Agricultural charges under the Agricultural Credits Act 1928
Produced in partnership with Tom Williams of Michelmores
Agricultural charges under the Agricultural Credits Act 1928

The following Property practice note Produced in partnership with Tom Williams of Michelmores provides comprehensive and up to date legal information covering:

  • Agricultural charges under the Agricultural Credits Act 1928
  • Introduction to the Agricultural Credits Act 1928
  • Who can grant an agricultural charge?
  • Who may take an agricultural charge?
  • What assets can be charged?
  • What assets cannot be charged?
  • What form of security does an agricultural charge take?
  • What are the bank’s rights?
  • What form does the charge take?
  • Appointment of receiver
  • More...

Introduction to the Agricultural Credits Act 1928

The Agricultural Credits Act 1928 (ACA 1928) created a bespoke form of security that allows a farmer to grant a single charge (described in ACA 1928 as an ‘agricultural charge’) to a bank over personal chattels and compensatory payments. These include all the farmer’s farming stock and other agricultural assets (but not the land which he farms).

Prior to the introduction of ACA 1928, if a farmer wanted to grant security over his non-land assets, it had to be taken as a Bill of Sale under the Bills of Sale Act 1878 and the Bills of Sale Act (1878) Amendment Act 1882, which regulated the grant of a charge over chattels. Bills of Sale remain an alternative form of security, particularly for non-bank lenders.

Agricultural charges are expressly excepted from the requirements of the Bills of Sale legislation. The introduction of agricultural charges under ACA 1928 was widely seen as increasing a farmer’s flexibility to use their general business assets as security more easily than under the Bills of Sale legislation.

Who can grant an agricultural charge?

An agricultural charge can only be created by a ‘farmer’. Only an individual can be a farmer for these purposes. However, not every person who is engaged in farming activities falls within the definition of ‘farmer’. In order to qualify as a farmer under

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