Agricultural partnerships and joint venture agreements—which to use?
Produced in partnership with Agri Advisor.
Agricultural partnerships and joint venture agreements—which to use?

The following Property practice note Produced in partnership with Agri Advisor. 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
  • BPS—Who is the claimant?
  • Cross compliance
  • Agri-environment schemes
  • Inheritance tax
  • Asset ownership
  • Management control

Brexit: The UK left the EU on 31 January 2020. This has implications for the schemes providing for agricultural subsidies in England and Wales, which will no longer be derived from EU Common Agricultural Policy. We will introduce content to address the new regimes once the legislation (including the Agriculture Bill) has been enacted.

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

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