Llanelli Farming Legal Services

Agricultural Law

Kirsty’s Law provide agricultural law services across South West Wales. 

Read on to learn more about how we can assist you with your legal requirements. 

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Share Farming Agreements

Share farming agreements exist where two parties jointly farm the same land and often include the landowner providing land, buildings, fixed equipment and maintenance, while the working farmer provides the labour and moveable equipment, this is of course dependent on the agreement they have had drawn up.

The agreement between them will define their separate activities and responsibilities and so define who is liable for which costs, such as maintaining fixed equipment or fertilisers. There are sometimes shared costs such as feed and seed. Any livestock on the farm is owned in shares and the produce from said livestock is rewarded by a share of the profits made (in the case of sale of the produce). The percentage share of the profits will of course have been agreed on and in the signed agreement they have entered.

Each business is run separately and will have its own set of books, own bank account and be responsible for reporting tax and VAT separately to HMRC, as there are two businesses running on the same land.

Farm Business Tenancies

Since 1st September 1995 all tenancies of agricultural land have been re-classed as farm business tenancies. All or part of the land must be used for trade business purposes, and this must remain the case throughout the tenancy. The character of the tenancy must be wholly agricultural, and the landlord and tenant must exchange notices in the statutory form prior to the start confirming that it is to be and will remain a farm business tenancy.

Succession Tenancies

Tenancies created under the Agricultural Holdings Act 1986 allow agricultural holdings to be let by the landowner to a tenant. The tenant under an AHA tenancy may have succession rights, i.e., when the tenant dies or retires, a close relative such as husband or wife, child or other close relative can take on the tenancy. In some circumstances, these rights can apply twice, so a tenant’s child and then that new tenant’s child could continue the tenancy provided they are suitable to become a tenant and that their main source of income must come from their work on the land.

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Windfarm Agreements

With windfarms becoming ever more popular, many landowners are being approached by energy companies wanting to put windfarms on their land. These are called option and lease agreements and permit the installation of wind turbines together with related infrastructure plus maintenance. 

The future of farming has a focus very much on climate, renewable energy can offer an opportunity to diversify a farm business as well as offsetting emissions from other farm activities and reducing energy costs. The UK’s decarbonisation programmes are presenting landowners with an opportunity. The costs of renewables projects are falling all the time, which means that now, more than ever they are becoming a realistic means of increasing a farmers’ income.

Here at Kirsty’s Law, we specialise in creating viable agreements between the landowners and the energy companies, specialising in protecting the farm or owners land for future usage. The typical term for a windfarm agreement is 30 – 40 years plus and it is of paramount importance that the land is usable for a variety of purposes after the term is over. The landowner should make clear to the renewables company if they want to retain the right to maintain all or parts of the land during the lease term or whether they expect the company to have maintenance responsibilities.

Are you looking for An Agricultural Lawyer in Llanelli?

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Cardiff: 02920 023344
Swansea: 01792 342088
Llanelli: 01554 700502

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