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Agricultural law update

William Barr examines the mid-term review of CAP and IHT and agricultural property relief


25 April 2003

The main development concerning agricultural lawyers over the last six months is not yet law and may never become so. Nevertheless it has had more impact on the various business and taxation issues relating to farm property than anything since the introduction of milk quota in 1984. While the Government’s Tenancy Reform Industry Group (TRIG) continues to discuss ways of enabling landlords and tenants to work together to diversify farm businesses, the impact of the Mid-Term Review is potentially so damaging to the landlord and tenant system for agricultural land that new lettings may totally dry up as they did in the late 1980s and early 1990s – leading to the introduction of the new farm business tenancy regime under the Agricultural Tenancies Act 1995. The EU Commission released its draft legislative proposals for the Mid-Term Review of the Common Agricultural Policy on 22 January 2003. Much of the content was widely expected. It proposes that subsidies paid to farmers will be gr...

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