The Gazette 1972

Long-Term Tenancies

ieo McCarthy

Agriculture in the West of Ireland: A Study of the Low Farm Income Problem by Dr. John J. Scully, Western Regional Officer of the Department of Agri– culture and Fisheries, has recently appeared. This "Report is being published, without any commitment on the part of the government to the views and recom– mendations contained therein, in order to create a better understanding of the nature of the problems of agri– culture in the West, to encourage wider discussions of those problems and to stimulate constructive sugges– tions for their possible solution." Agricultural journalists have commented widely on this Report and it is well that provincial practitioners should have a summary of those suggestions of Dr. Scully which are of a legal nature. The third chapter deals with land tenure and instances five specific defects in this connection. The status of farm titles is regarded a~ one such defect because it leaves the farmer uncer– tain as to the future control of his land. This is regarded as uneconomic as it reduces his incentive to increase productivity. Having examined the official folios in the various county registrars' offices it is stated that of the total. number of farmers who took part in the survey (5,052) 62.7 per cent have fully-registered titles to their fanns. One-third of the fanners concerned had not got registered titles. In between there was a small percen– tage (4.4) who had a registered title to part of their fann. In a footnote the author states "part-registration of farm titles usually results when fanners purchase or otherwise acquire additional land and in the process secure a legally-administered title to it, while at the same time neglecting, for one reason or another, to obtain a proper title to the remainder of the fann." The figures obtained by examining the official folios are compiled thus :

grazing rights on mountain, hill or lowland common– ages and it appears from the survey that these rights were not being fully used. So much so that the author suggested that the commonages be sub-divided provided a development plan was started. Detailed figures illus– trate the two remaining land tenure defects namely farm size and fragmentation. Chapter four is entitled "Demography" and it includes a section on farm succes– sion where further statistics show that of the farmers who took part in the survey one-third of those over fifty have no prospective heirs. Land Bonds Chapter ten is entitled "Western Development in Historical Perspective". The Report goes back to the Purchase of Land (Ireland) Act, 1891, establishing the Congested Districts Board. The work of the Land Com– mic:sion is also reviewed and reference is made to com– pensation being paid in land bonds. Reference is not made to the widespread dissatisfaction about payment in land bonds in their present form (see the Law Society's excellent representations printed on page 154 of the Gazette for November 1971). In dealing with the 1965 Land Act it is stated that the life annuity scheme and the self migration loan scheme have not met with much success. The most interesting section of the Report is the third and final part listing Dr. Scully's recommendations. Coming out strongly in favour of long-term tenancies the Report states that what is needed is a sy~tem of asses3ing fair and equitable rents, an adequate tenancy period to allow the tenant sufficient time to get a satis– factory return on his investment, provision, if necessary, for revising rents at the end of the tenancy period, and a guarantee of renewal of tenancy contracts. It is hoped that the transfer of tenancies to heirs could be arranged and that it could be written into every tenancy contract that compensation would be made to the tenant for pennanent farm improvements. The Report admits that any suggestion of a return to the rental system of land tenure would appear to be forsaking- the cause of tenant purchase begun over one hundred years ago. The writer believes it was under the Irish Church Act of 1869 that for the first time State funds were given to help tenants to purchase their holdings. A minimum of ten years i<; suggested for the tenancy period. It is suggested that any shorter period would not enable the tenant 1:0 obtain a satisfactory return on permanent investments such as land reclamation. It is also stated that the tenant should have a right to a new tenancy and the writer is reminded of the 1931 Landlard and Tenant Act. It is recognised that the establishment of an equitable rent would be all important to the C'uccess of this scheme. As a suitable guideline for the ,Purpose of rent fixation it is suggested that the rent should not exceed 5 per cent of the prevailing price of land at the begin– ning of the tenancv period. One is reminded that the Land Commission fixed rents during its early years and it is envisaged that a similar statutory body would per– form this function again. To deal with inefficient lessees the insertion of a penalty clause in all tenancy contracts is suggested If such a scheme became widespread the Report state~ that it would lead to a stabilisation of rents over a predetermined period of time which in turn should lead to a stabilisation of land prices.

Percentage Distribution of Fanns according to Title, Status, by County

Status 01 farm title

regijtered part-registered not registered

County

38.2 45.7 52.3 31.4 18.1 25.1 27.0 34.8 25.9 25.9 27.0 31.4

12.8

49.0 53.7 42.6 65.8 80.5 71.6 68.0 59.9 68.8 69.2 67.0 67.6

Cavan Clare

0.6 5.1 2.8 1.4 3.3 5.0 5.3 5.3 4.9 6.0 1.0

Donegal Galway Kerry Leitrim Longford

Mayo

Monaghan Roscommon

Sligo

West Cork

32.9

4.4

All Counties

62.7

Other land-tenure factors which come under the author's critical eye and are listed as defects are short– tenn leasing arrangements and the use of communal grazing rights. The eleven months or conacre renting of land is regarded as uneconomical. The reason given is because this method of taking land is largely confined to small farmers and the rent imposes a heavy burden on them. 13.2 per cent of the fanners had communal