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 authority searches – which highlight any planning, building control, highways, or pollution issues;
• environmental searches – which will throw up issues surrounding flooding, landslide, subsidence, or contaminated land;
• water and drainage searches – to establish who owns and maintains sewers, drains and piping on the property.

When buying or selling agricultural land though, there are additional considerations to investigate such as:

• Sporting rights – these allow whoever owns the rights to enter the land to hunt, fish or shoot, regardless of who owns the property. When buying or selling agricultural land, it is important to clarify whether these rights pass with the sale of the property or are being retained or sold elsewhere.
• Basic payment scheme entitlements – these rural grants and payments were made by the European Union to support the farming industry. They are being phased out following Brexit, but you can still currently transfer land parcels and basic payment scheme entitlements and you will need to take the necessary steps to effect the transfer if buying or selling farmland.
• Cross-compliance rules – if you claim grants under the basic payment scheme or a stewardship scheme, the cross-compliance rules require you, among other things, to safeguard public, animal and plant health, promote biodiversity and minimise the risk of pollution. Any sale must therefore make it clear whether the buyer is taking over the benefits of these schemes and is willing to comply with these rules.
• Environmental impact assessment screening or consent decision – if you are buying rural land and want to change its use, you will need to apply to Natural England for a screening decision. If they decide your plans will have a significant effect on the environment, you will then need to obtain a ‘consent decision’ before the work can go ahead.
• Agricultural ties – if you are selling or buying land which holds a property with an agricultural tie, you will have to apply to your local council to have the tie lifted unless the house will still be occupied by someone who is ‘solely or mainly employed, or last employed, in the locality in agriculture…or in forestry…or a widow or widower of such a person’, as required under the Town and Country Planning Act 1971.
• Rights of way – pieces of farmland can often be sited some distance away from a public road, so it is imperative when establish that there is a right of access to the land. Equally, if you are buying the land for a specific purpose, you need to ensure it is not subject to a right of way for others which could scupper your plans.
• Lettings – if part of the land has been let to a local farmer, for example, the seller will have to take steps to ensure vacant possession can be provided before completion. If the tenants have been granted security of tenure, it may be necessary to go to court and pay compensation to get them out.
• Services – ensuring there is an adequate water supply is important for farmland. Buyers also need to discover whether a water abstraction licence is required and on what terms. Buyers should also check whether there are any written agreements between the landowner and utility or telecoms companies giving permission to install, maintain or repair the network equipment on the property.

How we can help

Whether you are buying or selling farmland, our specialist agricultural law solicitors are here to help. We will work closely with you from the outset of your conveyance to identify and alleviate any hidden issues that could cause delays in the sale, as well as offering advice on minimising any tax implications.

We will conduct all the necessary searches, carry out any required negotiations, draw up all the contracts and paperwork needed and be at your disposal until the sale goes through.

For more information please contact our office on Malton 01653 692247, York 01904 716000 or Wetherby 019427 5823210 or complete our online enquiry form.