Agricultural Tenancies Act 1990

It is a term of a tenancy that the owner must pay fair compensation to the tenant if there has been a general improvement to the farm by the adoption of better farm management by the tenant—

than is normally practised on farms of the same character, and in the same neighbourhood, as the farm concerned, or

than is required by any agreement.

The compensation is to be reduced by the amount of any compensation paid or agreed to be paid, or determined by the Tribunal, for a particular improvement that caused or contributed to the general improvement.

In determining what constitutes fair compensation for the purposes of determining the compensation payable for a general improvement carried out by a tenant, regard may be had to the financial resources of the parties, the financial returns that might be expected from the improvement and other factors.