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Agriculture: the business case


In England and Wales, around 33% of agricultural land is rented. Those in the agricultural sector comprise of (among others) farmers, growers and producer groups. The law – both national and EU legislation – plays an integral part in the running of their businesses, and will in some way be involved with a matter listed below.

 The sub-areas of law that come under the ambit of agricultural law include:

 

  • Sales and purchases of farms and estates;
  • Agricultural landlord and tenant issues;
  • Agricultural joint ventures and partnerships;
  • Tax planning including heritage law and finance;
  • Agricultural subsidies;
  • Environmental and waste management issues;
  • Wind farms;
  • Succession;
  • Share farming;
  • Conservation and land use;
  • Trees and forestry;
  • Manorial rights;
  • Health and safety;
  • Mineral extraction

 The farming industry has become much more commercially varied lately, with farmers diversifying into property developers (for example, farm building conversions), landlords (letting out pony paddocks etc) and other recreational pursuits (quad biking, venture rides etc).

 Since the introduction of Farm Business Tenancies in 1995 there has been a steady decline in the amount of litigation involving agricultural tenancies and claims for succession and security of tenure in particular.

 Property rights and interests are naturally incidental to the ownership of land. But agricultural law is much wider than this. It is unique in that it also deals with areas uncommon to general property law, such as water rights.

 Aspects of estate management include tenancy regimes and the farm subsidies system.

 The relationship between landlords and tenants of agricultural holdings are governed partly by the terms of their individual tenancy agreements and partly by the agricultural tenancy legislation. The two main pieces of legislation dealing with agricultural tenancies are the Agricultural Holdings Act 1986 and the Agricultural Tenancies Act 1995.

 Agricultural law, tax and finance not only deal with the traditional areas of agricultural holdings and farm cottages - it also covers areas such as contracts and agreements, regulations, controls and quotas, property and environmental law, diversification and insolvency.

 Dispute resolution in this area of the law embraces the Agricultural Land Tribunals Rules 2007, the new prescribed forms for tribunal proceedings and the Arbitration Act 1996.

 Agricultural Land Tribunals were established under the Agriculture Act 1947 to hear appeals against decisions given by the Minister or County Agricultural Executive Committees, and play an important role in settling disputes and other issues between agricultural tenants and landlords arising from tenancy agreements held under the Agricultural Holdings Act 1986.

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