The Uncertainties Of Grazing Agreements

Posted:

Granting a licence to utilise grazing land can be perilous. Do not consider this action lightly, much will depend on who is the grazier, which animals are grazing. If it is a licence for storage then there is just as much risk for the unwary. 

What might start life as an agreement to let a few horses graze, can become a protected commercial tenancy with rights of renewal. Understanding the differences between the various forms of land occupation, for example, a grazing or cropping licence, a farm business tenancy, a business tenancy under the Landlord and Tenant Act 1954, a common law tenancy, and agistment, are essential when advising farmers looking to grant some form of occupation.

In a similar vein, widen that use to any form of land occupation, which brings in commercial activities such as storage utilising farm buildings, and the same principle applies. 

Other matters to consider are the tax treatment of this income and also whether the building or for example a manege, is liable to be rated. This is usually the case. 

So, before you let someone onto your land under any form of agreement, written or otherwise, make sure you know the detail and what challenges you might be letting yourself in for.