What type of agreement?
The UK average farm size nearly doubled between 2005 and 2010 recognising there has been a rapid and vast shift in structural change in a farming business. Gone are the days of one holding per farm, in fact now there would only be a very small proportion of farmers who are farming a single owner occupied farm with no additional land.
When taking on or letting additional land there are many different tenancy and farming structures that should be considered including Farm Business Tenancy, grazing licences, share farming, contract farming and hybrid joint venture agreements.
There are a great many drivers that influence what is the best type of agreement, including personal and business circumstances, resources and cash available and tax position of each party.
Getting it wrong can at best be a waste of an opportunity and at worst be expensive and costly. We have many years of advising and then drafting suitable agreements meeting the above drivers. In some circumstances when working on behalf of landlords we remain involved with the management of the agreement either collecting rents or in the case of other agreements such as share or contract farming, managing the profit share calculations and record keeping requirements.
We are always happy to talk you through how agreements work and the benefits / disadvantages of the various options.
If you are the landlord or tenant of historic tenancies under the Agricultural Holdings Act, there are stringent statutory timescales to work to – if you receive a Notice of any description please contact us without delay.