Farm business tenancies

Farm business tenancies are a central aspect of agriculture and rural land management in England and Wales.

Whether you are a landowner or tenant farmer, understanding the intricacies of a farm business tenancy can ensure your agricultural enterprise is secure, profitable, and legally compliant.

At Moore Barlow, our dedicated rural property team has extensive experience guiding clients through the legal complexities involved in farm business tenancies, ensuring clarity, efficiency, and protection of your interests.

What is a farm business tenancy?

A farm business tenancy (FBT) is a type of agricultural lease, introduced by the Agricultural Tenancies Act of 1995. This agreement enables landowners and tenant farmers to enter into flexible tenancy arrangements specific to agricultural businesses.

The core feature of an FBT is the requirement that the land must primarily be used for farming purposes throughout the tenancy term. These tenancies can be tailored to meet individual circumstances, from shorter-term agreements to longer, more stable contracts, making them an attractive and practical option for many in the agricultural sector.

Benefits of setting up a farm business tenancy

There are numerous advantages to establishing clearly defined and legally robust farm business tenancies. For landlords, these agreements offer flexibility and security, ensuring long-term value and providing steady income from their agricultural properties. Tenant farmers equally benefit from clearly outlined obligations and rights, establishing stability and the freedom to invest confidently in the farm’s productivity and improvement.

Additional benefits of farm business tenancies include:

• Clearly defined terms and responsibilities for both parties
• Enhanced security and legal protection tailored to individual circumstances
• Flexibility for both short-term and long-term arrangements
• Potential to agree rent reviews reflective of market conditions
• Clear framework for dispute resolution or renegotiation, should circumstances change

Navigating legal complexities with trusted guidance

Farm business tenancies are highly specialised agreements, subject to specific agricultural laws and regulations. With the necessity to comply fully with the Agricultural Tenancies Act 1995 and subsequent legal standards, both landlords and tenants require expert legal support and advice to manage their agreements effectively.

At Moore Barlow, our knowledgeable solicitors can advise you comprehensively, guiding you seamlessly through the process from initial negotiations and drafting to managing renewals or handling disputes.

Expert advice tailored to your situation

Every farm tenancy agreement is unique, influenced significantly by the involved parties’ circumstances, land characteristics, crop types, farming methods, and overall objectives. Our experienced rural property solicitors at Moore Barlow take time to fully understand your specific needs and ambitions, allowing us to craft tailored agreements that truly reflect your situation.

We provide proactive and practical advice relating to all aspects of farm business tenancies, including:

• Drafting and reviewing tenancy documents
• Negotiation of tenancy terms and conditions
• Termination and renewal procedures
• Dispute resolution and arbitration guidance
• Rent reviews and rent negotiation
• Compliance with agricultural legislation and regulations

Resolving disputes efficiently and effectively

While clear, professionally drafted farm business tenancy agreements significantly reduce the risk of disputes arising, disagreements are sometimes inevitable. Should a farming tenancy dispute occur, our specialist rural property team can provide you with reliable guidance, resolving issues swiftly and amicably wherever possible.

We are also well positioned to recommend and instruct Counsel for any disputes that require formal representation at tribunal or court.