Agricultural tenancy (agreements)

Managing land through agricultural tenancy arrangements can bring significant opportunities and obligations for both landowners and tenants.

Ensuring you have the correct legal structures and clearly defined agreements in place is vital to the success and sustainability of your farming operation.

At Moore Barlow, our experienced agricultural solicitors specialise in comprehensive legal services tailored specifically to rural properties and farming tenancies across the United Kingdom. We provide advice and guidance built around your specific circumstances and business objectives.

Understanding agricultural tenancy agreements in England and Wales

Agricultural tenancy refers to arrangements under which an individual or business occupies and farms land or premises owned by another party, typically under formal tenancy agreements. Within England and Wales, agricultural tenancies are predominantly governed by two specific legislative frameworks: the Agricultural Holdings Act (AHA) 1986, providing longer-term traditional security to existing tenancy arrangements, and the Agricultural Tenancies Act (ATA) 1995, which introduced the concept of Farm Business Tenancies (FBTs), characterised by greater flexibility and shorter terms.

Determining which type of agreement accurately reflects your needs requires expert legal advice. At Moore Barlow, our professional team can clarify the differences, advantages, and limitations associated with each tenancy type to help landowners and tenants navigate these legal frameworks effectively. Understanding these factors can bring vital clarity for ensuring smooth management and positive relationships between owners and occupiers.

Why choosing the right tenancy matters

Traditional AHA tenancies frequently provide higher levels of security and succession rights, which can appeal greatly to tenants seeking stability in their farming careers.  With the security of tenure that AHA tenancies provide existing tenants of agricultural land assuming they are occupying in accordance with the legislation, they are not easily given up. Conversely, Farm Business Tenancies, introduced through the ATA, are gaining popularity amongst landlords and tenants due to increased flexibility over use of the land and control over tenancy terms and durations.

Choosing the best arrangement for your situation can protect both parties’ interests, provide necessary security and flexibility, and ensure long-term mutual benefit. Moore Barlow’s agricultural tenancy solicitors have extensive experience and business-driven insights to ensure you fully comprehend all implications and make informed strategic decisions.

Negotiating and drafting tenancy agreements

Assessing which legislation might apply and creating clear, legally sound tenancy agreements is essential to avoid potential misunderstandings and disputes further down the line. Each agricultural tenancy agreement should carefully consider responsibilities and rights related to practical aspects including land management, maintenance obligations, rent reviews, succession rights, and termination circumstances. A clear and comprehensive agreement helps mitigate future conflict and fosters stronger, working partnerships.

Moore Barlow’s dedicated rural property team provides focused, bespoke drafting and negotiating assistance. We actively listen to your priorities, accurately defining the precise terms of the tenancy, minimising risks, and tailoring agreements for cohesive, long-lasting relationships.

Resolving agricultural tenancy disputes

Despite best efforts, disputes invariably occur within agricultural tenancy arrangements, often relating to tenancy succession, rent negotiations, repairs, termination notices, or differing interpretations of agreement terms. Navigating through these disputes promptly and constructively is crucial to minimise disruption to operations.  Our team is well positioned to recommend and instruct Counsel to support them when an agricultural tenancy is under dispute.

Succession planning and agricultural tenancies

Succession in agricultural tenancies presents particular legal complexities, especially within traditional AHA tenancies which contain specific succession rights. Properly addressing succession planning ensures continuity, safeguarding both the tenant’s and landlord’s interests.

At Moore Barlow, we provide strategic advice on succession, taking into account family dynamics, statutory rights, and long-term estate and tax planning considerations. Preparing early and strategically can guarantee equitable, controlled transitions in management or occupancy and effectively protect your agricultural legacies.