The following Property guidance note provides comprehensive and up to date legal information covering:
Produced in partnership with Agri Advisor.
Joint ventures are becoming increasingly popular in the agricultural industry and provide options for farmers who perhaps want to share the workload or are considering taking a step back from farming or landowners who would prefer not to farm in-hand. This Practice Note will look at various joint venture models in terms of what they are, how they are formed and factors to consider when advising clients.
According to section 1 of the Partnership Act 1890 (PA 1890), a partnership is ‘the relation which subsists between persons carrying on a business in common with a view of profit’. There are no formalities needed to set up a partnership in terms of registration. This in turn can cause problems due to people inadvertently creating partnerships, and this will certainly be true with regards to joint ventures where people have attempted to label something one type (such as share farming) but in fact they are farming in partnership. There are statutory restrictions as to the name of the partnership; however, most farming partnerships will comprise of the parties’ surname and possibly their initials which complies with the statutory requirement.
For information about forming a partnership generally, see Forming a general partnership—flowchart.
The three things that need to be done to
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