Agricultural partnerships and joint venture agreements—which to use?
Agricultural partnerships and joint venture agreements—which to use?

The following Property guidance note provides comprehensive and up to date legal information covering:

  • Agricultural partnerships and joint venture agreements—which to use?
  • The parties’ relationship and aims
  • Duration
  • Basic Payment Scheme and Cross compliance
  • Agri-environment schemes
  • Inheritance tax
  • Asset ownership
  • Management control

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.

The parties’ relationship and aims

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