Approximately 70% of the country land area is United Kingdom is used for agriculture. Nonetheless, the number of people engaging in farming is reducing drastically with each generation as the cost of entry into farming in on the increase. The average age of British farm holders stands at 59.

In order to solve the problem of low earnings there are moves towards organic farming to sustain profits. Many farmers are also diversifying into activities away from pure agriculture to supplement their income as long as the activity is within agricultural law.

Agricultural laws in UK are closely related to property laws as farming is done on land. These laws are a combination of long standing statutes and those which have come into effect within last century. Some even contain several hefty alterations added in the last 15 years. The property laws have been undergoing numerous changes within last 5 years therefore it is important for farmers to keep up with the laws.  There are now specialist Agricultural Law solicitors looking to advise on all aspect of agricultural finance and law.

On business front, there are many foreign companies setting up businesses including farming in United Kingdom. These are the factors that made U.K government to make an attempt to safeguard interests of local people. It has brought more restrictions for foreigners trying to buy land.

When someone buys land in U.K, it should be registered with the land authorities. Registration fees are paid during the time of purchase.  Land registration fee is different from that of commercial and residential properties.

Due to hectic activities in real estate before recession set in, there is no much free land available in U.K. The provisions specified in Land Registration Act should be followed strictly when registering properties.

Farming partnerships

Agricultural law helps to prevent disputes in farming partnerships even for farmers who use traditional and time honoured methods of farming. Most farms run along traditional lines as they are family owned and operated.  Most of farms owned by individuals or families do not take advantage of modern structures of business such as limited liability companies.   In most instances, it is the large commercial businesses that embrace the concept of limited liability companies.

Family farms are operated by head of the family as a sole trader. This person makes all the decisions until the children are old enough to manage the farm. It is at this point that most farm businesses are turned to partnerships. There are no legal formalities for creating partnerships and is even possible to run partnership businesses without putting any agreements in writing.

Although partnerships without written agreement do not contravene any agricultural law, it is advisable to have a formal agreement. Formal agreements will help in imposing the terms of agreements which some partners may consider to be undesirable. A formal agreement will come

Comments are closed.

Post Navigation