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Illustration of Board refutes claim

Landowners Claim Shortchange: $16M Loss Since 2016

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The iTaukei Land Trust Board (TLTB) has raised concerns regarding the financial repercussions faced by landowners due to a prolonged absence of reviews on agricultural land rentals since 2016. In a recent statement, the TLTB clarified that agricultural leases are governed under the Agricultural Landlord Tenant Act of 1960 (ALTA), but noted that some regions have been excluded from these regulations since colonial times.

The commentary from TLTB comes in response to remarks made by Mahendra Chaudhry, the general secretary of the National Farmers Union, who attributed the high rent and premium charges by TLTB as significant factors driving tenants away from their farms. TLTB emphasized that, according to ALTA, rent should not exceed 6% of the Unimproved Capital Value (UCV) based on various land classifications, with UCV reviews intended to happen every five years.

While the last review occurred in 2011, subsequent reviews in 2016 and 2021 did not take place under the previous government, leading to a considerable loss for landowners. It is estimated that over 21,242 leases have been affected, causing an estimated rental income loss of around $16 million since 2016.

Regarding the rental amounts, TLTB asserted that the premiums and rents levied under ALTA are among the lowest globally. For instance, the lease cost for a 10-acre plot could be as low as $1,000. The TLTB pointed out that the previous government initiated a rent subsidy in 2008 to mitigate costs for productive leases, allowing an effective rent of 10%.

Furthermore, TLTB stated that blaming rent alone for the departure of farmers overlooks several other factors like low productivity, poor agricultural practices, transportation costs, and the aging farmer population among others.

This situation reveals significant complexities in the agricultural leasing landscape, showing that addressing the underlying factors leading to tenant departure is crucial for enhancing farming sustainability. The hope remains that with the current conversation sparked around this issue, a collaborative effort can emerge among stakeholders to develop effective solutions that support landowners and encourage better farming practices for a fruitful agricultural future.


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