The iTaukei Land Trust Board (TLTB) has raised concerns that landowners have been deprived of fair compensation for their land since 2016, as they addressed controversies surrounding agricultural lease rents. This response comes after comments from Mahendra Chaudhry, the general secretary of the National Farmers Union, who suggested TLTB’s rent and premiums have driven tenants away from farming.
According to TLTB, agricultural leases are regulated by the Agricultural Landlord Tenant Act of 1960 (ALTA), with certain exceptions dating back to the Colonial era. They clarified that rent is capped at a maximum of 6% of the Unimproved Capital Value (UCV) of the land, which is evaluated and adjusted every five years. However, the last UCV review was conducted in 2011; no reviews occurred in 2016 or 2021 due to inaction from the previous government’s Ministry of Agriculture. TLTB highlighted that because of this oversight, landowners have collectively lost out on approximately $16 million in rental income since 2016 regarding nearly 21,242 leases.
Furthermore, it was noted that the premiums charged by TLTB for new lease agreements are relatively low, with examples indicating as little as $1,000 for a 10-acre lease. In light of these figures, the TLTB contested claims that rental costs are the primary reason for farmers exiting the industry, stating that various other issues such as low farm productivity, inefficient mills, and increasing operational costs contribute significantly to the challenges faced by farmers.
This situation highlights systemic issues in agricultural resource management that could be addressed with a renewed commitment from the government and relevant authorities toward regular evaluations and support for landowners and farmers alike. By acknowledging and addressing the underlying factors of low productivity and operational challenges, there is potential for revitalizing the agricultural sector and stabilizing the livelihoods of those who work the land.
In summary, while there is a pressing need for fair compensation for landowners, the resolution may lie not only in financial adjustments but also in tackling the broader systemic inefficiencies within agricultural practices.
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