The iTaukei Land Trust Board (TLTB) has expressed concerns that landowners have been undercompensated for the use of their land since 2016. This statement comes in response to comments from the National Farmers Union’s general secretary, Mahendra Chaudhry, regarding the rent and premiums imposed by the TLTB on agricultural leases, which he believes contribute to tenants abandoning their farms.
According to TLTB, agricultural leases fall under the Agricultural Landlord Tenant Act of 1960 (ALTA), with provisions allowing for rents to be capped at 6 percent of the Unimproved Capital Value (UCV). The last UCV review took place in 2011, and no further evaluations were conducted in 2016 or 2021 due to a lack of action from the previous government. As a result, TLTB estimates that over 21,000 leases have caused financial losses amounting to approximately $16 million to landowners since 2016.
The organization emphasized that the premium or rental fees charged are among the lowest globally. For instance, a 10-acre lease may cost just around $1,000. In light of this, TLTB criticized the notion that these costs are the primary reason for farmers exiting agriculture, highlighting other contributing factors such as low productivity, poor farming practices, transportation issues, and an aging farming demographic.
This situation presents an opportunity for stakeholders to come together to find solutions that support both landowners and tenants, promoting a more productive agricultural sector in the region. By addressing both the financial aspects and the practical challenges facing farmers, the community may forge a path towards revitalizing agricultural activities and improving overall outcomes.
In summary, the TLTB acknowledges that landowners have faced challenges due to a lack of timely UCV reviews while asserting that the rental and premium rates are not the sole cause of farmers leaving their leases. It calls for a comprehensive approach to tackle the broader issues affecting agricultural productivity.
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