Over the years, I’ve seen many arrangements between landowners and farmers that started with a handshake and the best of intentions. Whilst these agreements can work well, it’s essential to ensure that the occupation of agricultural land is documented correctly from the outset.

A question we are often asked is: “Should this be a Farm Business Tenancy or a Grazing Licence?”

On the face of it, the answer can seem straightforward. However, the implications of getting it wrong can be significant.

A Farm Business Tenancy (FBT) creates a landlord and tenant relationship and grants exclusive occupation of the land for agricultural purposes. It can provide certainty for both parties and be an excellent mechanism for allowing land to be farmed productively whilst protecting the interests of the landowner.

A Grazing Licence, by contrast, is intended to be a simpler arrangement that grants rights to graze livestock without creating a tenancy. However, the reality is that if a grazing arrangement is not structured correctly, it can unintentionally create rights that neither party expected.

This is where professional advice becomes invaluable.

Every farm, estate and landholding is different. What may be appropriate for one client may be entirely unsuitable for another. There are often wider considerations around inheritance planning, taxation, environmental schemes, diversification opportunities and long-term asset management that need to be taken into account.

Too often, I see agreements based on historic arrangements, online templates or documents that have not been reviewed for many years. Whilst they may appear to achieve the desired outcome, they can create unnecessary risks and complications down the line.

Taking advice at the outset can save a considerable amount of time, cost and stress in the future.

At our firm, we are fortunate to have an experienced team of RICS Chartered Rural Practice Surveyors who work closely with landowners, farmers and rural businesses across the region. Whether you are considering granting an FBT, entering into a grazing licence, reviewing an existing arrangement or looking at the wider strategic management of your rural assets, we are here to help.

The agricultural sector continues to evolve rapidly, and ensuring that your land occupation agreements are fit for purpose has never been more important.

Good advice isn’t a cost. It’s an investment in protecting your land, your business and your future.

If you’d like to discuss any aspect of rural property management, farm tenancies or grazing arrangements, our Rural Practice team would be delighted to assist.

Simon Edwards MRICS

Managing Partner