23rd Feb 2015

Agricultural Tenancies

What are your options, when looking to lease out farmland? There are different types of tenancy and licence that apply to farmland.

For a very short term agreement, for say April to October, a grazing licence – which allows access for grazing sheep or horses only may be perfect.

One other option is a tenancy called a farm business tenancy. However, always be careful of the length of time such a tenancy is granted. You can grant a farm business tenancy for a fixed term of 2 years or less and this will just expire at the end of the fixed period. The tenant would have no right to stay on the land after this time.

Where one is given for more than 2 years – then 12 months’ notice would then have to be given to regain possession the land which must expire on the last day of the fixed term and if no notice is given the tenancy will continue on a year to year basis.

Before agreeing any licence or tenancy on agricultural land please seek legal advice.

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