Barriers and Enablers of Long‐term Land Leasing: a Case Study of Northern Ireland

Abstract

Long‐term land leasing offers a viable alternative to land ownership in relation to increasing efficiency of agricultural production, economies of scale, and delivering environmental improvements in terms of land management. However, with no significant tenanted sector in Northern Ireland, access to land via long‐term land leasing is limited. This study analysed the barriers and enablers of long‐term land leasing. To achieve our objective, we employed a mixed methods approach. The results show that the main barriers to long‐term land leasing were environmental concern (around how the land will be managed), inheritance tax implications and the potential effect of long‐term land leasing on future succession plans of the farm business. We also found that as much as 70 per cent of the farmers surveyed believe the inclusion of a ‘break clause’ and the introduction of income tax incentives will encourage the adoption of long‐term land leasing, while 61 per cent of the farmers stated that the environmental management of the land will encourage long‐term land leasing. The study concluded that any model designed to encourage long‐term land leasing in Northern Ireland should include clauses which cover the environmental management of the land and break clauses. Income tax incentives for landowners could also be considered.