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

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 :

Percentage Distribution of

Fanns

according to Title, Status, by County

Status 01 farm title

County

regijtered part-registered not registered

Cavan

49.0

12.8

38.2

Clare

53.7

0.6

45.7

Donegal

42.6

5.1

52.3

Galway

65.8

2.8

31.4

Kerry

80.5

1.4

18.1

Leitrim

71.6

3.3

25.1

Longford

68.0

5.0

27.0

Mayo

59.9

5.3

34.8

Monaghan

68.8

5.3

25.9

Roscommon

69.2

4.9

25.9

Sligo

67.0

6.0

27.0

West Cork

67.6

1.0

31.4

All Counties

62.7

4.4

32.9

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

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

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

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

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.