In the coming months, under the direction of the Ministry of Agriculture, Nature and Food Quality, the renewal of the lease system will be discussed. An important part of the tenancy system is the jurisdiction of the tenancy chambers. This has recently been underlined once again with the (provisional) judgment on phosphate rights. That is why it is good to examine the functioning of the lease rooms up to the light.
The ruling on the phosphate rights caused quite a bit of commotion, not least because of the superficial legal underpinning of the ruling. This raises the question of whether there is a certain arbitrariness or preference for the interests of the lessors. Each lease room has 2 expert members on behalf of tenants and lessees, who in practice are often stewards.
In addition to the expert members, there are also 1 or 3 judges who have the specific legal knowledge in-house. In other words: these expert members have a weighty voice within the lease chamber. However, is this voice pronounced sufficiently balanced, independently and transparently?
Executive role
The role of the stewards is important in this regard. In the past, the stewards were balanced administrators who (partly) determined the lease policy for the lessor. Now you see that stewards are more executive and budget-driven, and act as an extension of the lessor. I heard from a tenant that his steward stated well before the judgment that the phosphate rights also belonged to the lessor. Another NVR steward writes a story in the newspaper in which he argues rather unilaterally for higher rents.
These are 2 examples that show that the stewards are now in a different position than they used to be. In any case, it is neither balanced nor independent. I fear that this could be 'whose bread one eats, whose word one speaks'. It also confirms my feeling that a steward is no longer by definition the independent, balanced and skilled manager who stands between the tenant and lessor.
Complexity increased
De tenant however, is no longer the same as before. The agricultural profession has become much more complex and you really have to be involved in the matter to have the right feeling about lease matters. The knowledge and education level of tenant farmers is much better than before. They are good at explaining their side of the story. I am convinced that there are enough tenants with the competences to become experts in the lease room.
The same applies to the landlords† The way is therefore clear to appoint only expert members who are tenants or tenants. Of course with an equal number per lease room. That is clear, ensures better reflection with practice and a direct relationship between tenant, lessor and the courts. The latter in particular can increase confidence in the judiciary.
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.