Shropshire Farming Talk: Farm Business Tenancies
With the Michaelmas date now passed, the discussion of notices to quit may be taking a back seat for a few months.
However, in respect of forward planning and allowing both parties a good amount of time to discuss matters, it is worth remembering that a notice to quit needs to be served at least 12 months prior to the date that you wish the tenancy to come to an end.
The date on which the tenancy ends must be at the end of the contractual term, so for example if the tenancy began on September 29, it would come to an end on September 28 the following year.
The notice must also contain the relevant information to ensure that it is served in a valid form.
It is worth remembering that either party can serve a Notice to Quit. So, if the tenant wishes to give up the land, they too would need to serve the relevant notice.
Once notice has been served, we advise not leaving end of tenancy discussions regarding dilapidations and any potential breaches of tenancy until the eleventh hour. Opening the conversation early can allow for both parties to rectify any issues in a timely manner, allowing the tenant to mitigate a dilapidation claim and the landlord to assess the holding prior to reletting.
Other key things for discussion which have become more prevalent in recent years are the transfer of any existing Environmental Stewardship, Countryside Stewardship and Sustainable Farming Incentive agreements. Is there a clause in the tenancy agreement dictating what happens with the agreement? Is the landlord willing to take on the agreement from the outgoing tenant? It is best to begin this process prior to the termination of the tenancy to ensure both parties and the Rural Payments Agency are prepared to make the transfer.
A consideration when entering into a new Farm Business Tenancy is the provision of holdover within the agreement. Holdover allows a tenant the right to enter the property to harvest crops that were not able to be harvested by the termination date. Given the weather we have received this summer, this is something that may want to be discussed when drafting a new agreement.
James Neame, Nock Deighton
