BY now I guess that most of you reading this article will be well acquainted with the rather bizarre title of Defra’s consultation document on agricultural policy post Brexit – Health and Harmony .

One of the main themes of this document is, of course, how to best reduce the direct payments currently paid to farmers, with the stated objective being to reduce them to zero.

Much has been written about the potential impact on farmers and the farming industry of this reduction in direct support, but very often the role of landowners in the farming equation seems to get overlooked.

While the fate and future of landlords and tenants may be legally entwined for those with Agricultural Holding Act tenancies, the same is not the case for short term arrangements, such as farm business tenancies or grazing licences.

Defra recently released the results of its 2016 farm rent survey. It revealed that the average FBT rent in England in 2016 was £210/ha. Meanwhile, the direct payments received on land below the moorland line was around £218/ha.

It may be an over simplification to say that direct payments pay the rent, but there is certainly a relationship. A decline in the direct payments would equate to a decline in the earning capacity of that land and hence the rental value.

If direct payments do reduce to zero with no corresponding uplift in payments for “public goods”, will rentals decline to a similar level? Could we return to the days of landowners paying farmers to farm their land

Some might see this as an ideal arrangement, but the tenanted sector needs a healthy and harmonious landlord sector if the land is going to be made available for farming.

The prospect of zero or “negative rent” will not be appealing to many owners. Those with arable land may look to more involvement through share or contract farming arrangements.

Those with grassland may have fewer options but I am sure that innovative agreements will emerge or new leisure uses sought or it could be converted to forestry.

With reductions to some direct payments likely to be introduced as soon as 2020, landowners as well as farmers need to keep an eye on the ball, be fleet of foot and seek flexible arrangements to ensure that they don’t become hostages to fortune as change is implemented.

As with all capital assets, one also has to be mindful of any tax implications that could arise from a change in approach.

l Tom Wills is head of agriculture and estates at law firm Sintons, based in Newcastle. To speak to Tom on this or any other matter, contact him on 0191 2263796 or tom.wills@sintons.co.uk