Things you must look for in a good agricultural tenant

Coming from a tenant farmer background, but working as a land agent, has given me a strong basis when I look for a good tenant,

of Fisher German.

As more and more tenants are coming to us with issues regarding how to succeed to an Agricultural Holdings Act Agreement 1986 or new entrants looking to take a tenancy for the first time or those looking for short-term lets, the key issues I consider for each are as follows, many of which are the same, but often are ones that tenants who approach forget to consider.

They are:

Basic requirements:

• Family history

• Current and previous employment

• Education

• Qualifications

• Professional business plan and budgets

• Good strong references both of a personal and financial basis.

Succession Agreements (both on retirement and on death):

These are becoming more frequent and it is important that we meet the potential successor, have copies of CVs, farm accounts and the successor's future vision for the holding to see if it is in line with the landlord's.

Farm Business Tenancy Agreements:

A clear business plan with objectives requirements and gross margins are important.

The history and knowledge of the area and a farming background and an education is obviously important if you want to be short listed.

Going to your current farm or other tenanted land gives a land agent an indication as to how you farm and is often key when you get to the last few candidates which are obviously all of a high standard.

Contract Farming and Share Farming:

With entrepreneurs' relief being an important factor for many landowners who want to optimise their tax situation wherever possible, these opportunities are coming up more frequently and are a good way for younger farmers to become involved in the industry without having to invest too heavily.

However, for landowners to invest in their land with you at the helm they expect clear organisational skills, realistic gross margins and budgets – and be able to get on with you as an individual – so they can invest their money wisely and without high risk.

With more properties and opportunities coming on to the market in recent years, it is important for new tenants to stay ahead of the game.

Also many landowners are unsure of what future action they should take due to the variety of options which are on offer and therefore it is important to optimise your assets wherever possible and seek professional advice.