Risky business - why farmers should make a lasting power of attorney

Farming is a high-risk business with the agriculture, forestry and fishing sector topping the table for workplace injuries according to the most recent Health and Safety Executive figures. If you are the key person who makes decisions and holds the purse strings on your farm and you get injured or lose mental capacity, your farming business could grind to a halt: workers and suppliers could not be paid, bank accounts may become inaccessible, and loan or mortgage payments could fall into arrears. With this in mind, more and more farmers are making a lasting power of attorney to protect their business interests, to ensure their farm continues to flourish should they become incapacitated, as Laura Carter, Wills & Probate Solicitor and agricultural specialist at Pearsons & Ward Solicitors in Malton (part of Ware & Kay…

Inspired by Clarkson’s Farm? Key considerations when buying agricultural land

The last year has seen a surge in demand for agricultural land, according to recent analysis, with investors seeing it as an increasingly attractive option during a time of global economic uncertainty. Or maybe TV viewers have been inspired by Clarkson’s Farm? Whatever the reason, this spells good news for farmers looking to move to pastures new or offload land to raise extra funds but, buying or selling farmland can be more complicated than a normal property transaction. When buying farmland, we will still carry out the usual checks and searches required for any property sale or purchase, such as: investigation of title – to ensure the seller can pass the property to the buyer free of any adverse rights or warning notices and to establish whether there are any easements affecting the property; local…

Talking buying or selling land

Agri-environmental schemes are government-backed initiatives which pay farmers to make their agricultural activities more sustainable. They aim to increase biodiversity, restore the landscape, promote wildlife and to improve the quality of water, air and soil. Given the hardships many farmers have suffered due to Brexit, the pandemic and more recently the cost-of-living crisis, it is understandable why so many have embraced the concept of receiving subsidies to ‘go green’. But what schemes are available and what are the implications if you sell agricultural land which is subject to one of these schemes? Jacqueline Barr, agricultural law specialist at Ware & Kay Solicitors in York & Wetherby, reports. Shortly after the Agriculture Act was passed in November 2020, the government published The Path to Sustainable Farming: An Agricultural Transition Plan 2021 to 2024, which outlined its…

Gifts and inheritance tax in the season of goodwill

Christmas is the season of goodwill and, aside from choosing what presents to wrap and place beneath the Christmas tree, you may also be wondering if you can make some more substantial gifts to take advantage of tax reliefs such as agricultural relief and lifetime gift exemptions. Emma Elwess, Director of Private Client at Ware & Kay in York & Wetherby, explains the different ways farmers can use tax reliefs to give away gifts without incurring inheritance tax. General lifetime gifts During your lifetime you can give away any of your possessions worth up to a total value of £325,000 without being liable to inheritance tax. Gifts given over this amount will usually be subject to inheritance tax when you pass away (unless you live longer than seven years after the gift is given). There…

Farmers – are you on top of your EPC obligations?

It is common for farmers to supplement their incomes by renting out buildings on their land. All well and good, but in April 2020 new rules were introduced making it illegal, subject to some exemptions, to let a private rented property with an energy performance certificate (EPC) rating of less than E. So, what are the implications of this for farmers and are there any exemptions that they can take advantage of? Andrew Little, agricultural law specialist at Ware & Kay in York & Wetherby, reports. The Minimum Energy Efficiency Standards (MEES), under which an EPC is assessed, require anyone with a private rented property with a rating of F or G to undertake improvements to bring it up to an E rating before they can rent it out. The rules only usually apply to buildings…

Don’t let your diversification ambitions be thwarted by an agricultural land restriction

Many farmers have experienced hardship in the recent past, thanks largely to the combined effects of Brexit and Covid-19. Little wonder then that many are looking to use their land in different ways to boost dwindling profits. There are several ways you can diversify to make more efficient use of your agricultural land, but, before you embark on a diversification project you need to ensure your ambitions will not be thwarted by a restriction on change of use. Agricultural ties If you are considering selling a house on your land that has an agricultural tie (or an agricultural occupancy condition), it may make the property harder to sell. Under the Town and Country Planning Act 1971, such ties usually require that ‘the occupation of the property is limited to a person solely or mainly employed, or…

Be a good sport! Take care with sporting rights on farmland

Sporting rights can be extremely valuable to landowners with some, such as rights on a grouse moor, being potentially of more value than the land itself.  Granting sporting rights to others also provides an attractive means of diversification and a source of additional revenue to improve profit margins. However, as Jacqueline Barr, an agricultural law specialist at Ware & Kay Solicitors in York & Wetherby explains, ‘There can be pitfalls, when others have sporting rights over your property as this gives them the legal right to enter your land to hunt, fish or shoot.’ Acquiring land When buying piece of land, many believe that they will own it in its entirety and have the right to do whatever they want on it, and to stop other people doing anything on it too. Under English property law…

Diversification and Farm Business Tenancies

Farmers are having to diversify part of the farm to a non-farming activity in these current times to stay financially afloat. This will likely increase due to the decline in subsidies. So how do tenant farmers go about trying to diversify and what does this mean for landlords? Agricultural tenancies usually permit the tenant to use the holding for agricultural purposes only and may contain restrictions on carrying out alterations and works to the holding. A tenant’s continued ignorance of the tenancy agreement and pursuit of diversification projects could result in the landlord recovering possession of the holding. If the tenant wishes to set up a new company to pursue diversification, the tenancy agreement will need to allow for assignment, subletting or sharing of occupation. The tenant should also consider if it needs to negotiate a…

LPAs for farmers

Does your farm’s strategic planning include a lasting power of attorney? The agriculture sector is one of the riskiest to work in, with 23,000 people working in this industry suffering ill-health or a non-fatal injury each year according to Health & Safety Executive figures. As well as the hazards farmers face working with heavy machinery and vehicles, toxic chemicals and unpredictable livestock, they are also at risk when working at height, near pits or silos.  Farmers carry a heavy weight of responsibility on their shoulders, and if they become incapacitated and are unable to make decisions for themselves, it could be catastrophic for the farming business. Risk management is part of every strategic plan, and Laura Carter, Solicitor & agricultural law specialist at Pearsons & Ward Solicitors in Malton explains why an increasing number of farmers…

Branching out down on the farm

The agricultural industry has faced hardship in a number of ways over the last few years, with the rising prices, labour shortages and supply issues caused by both the UK’s exit from the European Union and the Covid-19 pandemic increasing the suffering of farmers even further. Little wonder then, that entrepreneurial farm owners are looking to branch out and change the use of existing agricultural buildings on their land to put them to more profitable use in a bid to survive in the modern age. Like other types of property, you will often need planning permission if you want to change how you use your land or buildings from farming to something else, or you want to build a house on the land. However, as Tracie Middleton, Property Solicitor and agricultural law specialist at Pearsons…