Implementing A New Farm Business Tenancy Agreement.

Berrys were approached by a farming client from Shropshire who had agreed to let 75 acres of his holding to a neighbour to grow maize.

What happened:

Berrys met with the client to inspect the land and to understand provisions including access to the land, services and soil quality.

Types of occupation arrangement were discussed and it was agreed a farm business tenancy would be the most appropriate as the neighbour would have exclusive access to the land for a three year period to grow maize.

The 75 acres were in one block but access was through the farmyard so a right of access had to be granted through the yard with conditions applied regarding timing of the access and the need to clean the access route after use.

The Basic Payment Scheme entitlements were transferred to the tenant so the BPS claim on the land was made by the tenant as he had the land at his disposal.

Berrys prepared a farm business tenancy agreement specific to the land that gave the landlord and tenant peace of mind in certain circumstances and contained relevant provisions regarding transfer of the Basic Payment entitlements.

Once the agreement had been signed by both parties and a pre-entry record of condition was carried out. Berrys then demanded and collected the rent on behalf of the landlord throughout the term of the agreement.

Outcome:

The landlord and tenant have a very good relationship. The landlord is pleased that Berrys can deal with any matters which arise on his behalf. The arrangement has suited both parties and the landlord has since agreed to add further land into the tenancy agreement.