The Agriculture (Calculation of Value for Compensation) Regulations 1978

Reduction of compensation

4.—(1) Where any work in relation to an improvement or other matter has not been carried out in the most efficient and economical manner practicable in the circumstances, or any improvement or other matter has been adversely affected by—

(a) any breach by the tenant of the rules of good husbandry, or

(b) any other act or omission of the tenant, whether intentional or negligent,

and the compensation for that improvement or other matter calculated pursuant to regulation 3 above exceeds the actual value to an incoming tenant, the compensation shall be reduced so as not to exceed such actual value, but no reduction shall be made for any adverse effects of seasonal conditions which the tenant could not reasonably have been expected to guard against or mitigate.

(2) Where—

(a) any hay, fodder crops, straw, roots, manure or compost are destroyed by fire or otherwise or, after the giving of a notice to quit by the tenant or the landlord and without the landlord's written consent, are sold by the tenant or removed by him from the holding, and

(b) but for the destruction, sale or removal, compensation would have been payable to the tenant under paragraph 8 of the Fourth Schedule to the Act in respect of the produce destroyed, sold or removed,

the compensation which would otherwise be payable to the tenant under these regulations shall be reduced by an amount equal to the reasonable cost to an incoming tenant of replacing on the holding produce similar in all respects to that which has been destroyed, sold or removed, less the value of the replaced produce itself, calculated under these regulations as if it had been on the holding when the tenant quitted at the termination of the tenancy.

(3) Paragraphs 8 to 10 of Part II of Schedule 1 to these regulations do not apply to crops or produce grown, seeds sown, cultivations, fallows or acts of husbandry performed or pasture laid down in contravention of the terms of a written contract of tenancy unless either—

(a) the tenant shows that the terms contravened were inconsistent with the fulfilment of the tenant's responsibilities to farm the holding in accordance with the rules of good husbandry, or

(b) the contravention was reasonably necessary in consequence of the giving of a direction by the Minister under the Agriculture Act 1947 or by the Secretary of State for Wales under that Act as read with the Transfer of Functions (Wales) (No. 1) Order 1978.