The Farms Estate Committee met on Tuesday 19 May 2026 to discuss financial monitoring, the annual report, farm rental payment dates, and management and restructuring issues. Key decisions included amending farm tenancy agreements to require rent payments in advance via direct debit, and approving the amalgamation and re-letting of farms in Woolsery and West Putford, as well as granting a temporary extension to a tenancy at East Fingle Farm.

Revenue Monitoring and Budget

The committee reviewed the revenue monitoring for the financial year 2025/26 and the budget for 2026/27. The final outturn for 2025/26 showed a surplus of £538,802, which was a shortfall of £11,198 against the target surplus of £550,000. This variance was attributed to increased expenditure on building maintenance and tenant right valuations. Rent arrears were noted to have increased, with officers explaining this was a common occurrence following the biannual rent invoices and that recovery actions were in progress. The budget for 2026/27 projected a surplus of £566,000. The committee endorsed the report.

Capital Monitoring and Budget

The committee also reviewed the capital monitoring for 2025/26 and the budget for 2026/27. In 2025/26, the total capital spend was £946,000 against a budget provision of £1,458,000, resulting in an underspend of £512,000. This underspend is to be carried forward to the 2026/27 budget, subject to approval. The report highlighted that slippage in the capital programme was due to specific project delays rather than systemic issues. Members emphasised the importance of continued investment in the estate's infrastructure. The committee endorsed the report.

Annual Report 2025/26

The 35th Annual Report of the County Farms Estate for 2025/26 was presented, detailing a busy and productive year despite a challenging operating environment for tenants. The report highlighted tenant progression, new entrant opportunities, and the success of initiatives like Farmwise and support for Devon YFC. Members noted the ongoing success of the estate in not being a drain on council resources, while also supporting new farmers. The committee endorsed the report.

Farm Rental Payment Dates

A significant decision was made regarding farm rental payment dates. The committee agreed to amend the standard form of Farm Business Tenancy Agreements for all future tenancies. This amendment will require tenants to pay rent in advance via direct debit in 12 equal monthly instalments, with the first payment due on the first day of the lease. This change aims to mitigate the council's exposure to rent arrears and bad debts by allowing for earlier intervention if payments are missed. The move was supported by tenant representatives and young farmers, who saw it as a practical and manageable change that would help with cash flow management.

Management and Restructuring Issues

The committee addressed several management and restructuring proposals for farms within the estate:

• Lower Alminstone Farm, Woolsery: The committee upheld the Case G Notice to Quit served on the personal representatives of the late tenant and a Section 7 notice for Part Cross Farm, Woolsery. Both holdings are to be vacated on 24 March 2028. Part Cross Farm will be permanently amalgamated with Lower Alminstone Farm. The combined holding will then be advertised internally as an equipped residential progression dairy farm for a term of up to 20 years, commencing 25 March 2028.
• Land at Glebe Farm, West Putford: The 27.85 hectares (68.88 acres) of bare land at Glebe Farm will be advertised for let via internal competition. Existing tenants of Merrifield Farm, North Hele Farm, and Lower Alminstone Farm will be invited to make offers for a five-year Farm Business Tenancy, commencing 25 March 2028.
• East Fingle Farm, Drewsteignton: In order to support the tenant's progression move beyond the estate, a fixed and final 12-month tenancy will be granted for East Fingle Farm. This tenancy will commence on 25 March 2027 and terminate on 25 March 2028, allowing the tenant time to secure new accommodation before vacating. This decision was made under exceptional circumstances policies to support a tenant's business continuity.