The following Property guidance note provides comprehensive and up to date legal information covering:
Produced in partnership with Agri Advisor.
There are a number of different joint venture agreements available providing a variety of options for landowners and farmers. The type of model to use will often depend on several factors. This Practice Note will look at these factors in more detail to help decide which model would be best for the parties.
It is important to note that the various structures available are interchangeable—the parties may start with a licence to occupy so that they have an opportunity to get to know each other before moving on to a partnership or share farming model, which could in turn change to a farm business tenancy if the landowner wanted to retire from farming.
When considering which structure to use, the first consideration should be the aims of the parties. If the landowner wishes to retire completely, partnerships or share farming will clearly not be an option. Likewise, if the young farmer wants complete independence, they are more likely to want a farm business tenancy (FBT). If however both parties are happy to meet somewhere in the middle, the various joint venture structures are available. The purpose of the joint venture needs to be considered—is it being set up for a specific reason such as to lighten the work load or help
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234