Published: 11/03/2025 By Ella Wittridge
When letting land, whether as the landowner or the tenant/grazier, it is important that you use the correct type of agreement. A Grazing Licence or a Farm Business Tenancy are used in different scenarios, but both clearly set out the commitment and responsibilities of each party. Graduate Surveyor Ella Wittridge from our Axminster office explains the two types of agreement.A Grazing Licence typically grants the grazier access to the land for less than a year and usually runs from 1st April through to the end of October. The grazier is essentially paying for the crop of grass, whilst the landowner remains responsible for the maintenance of the land including hedge cutting, fencing, ditching etc. By still ‘actively farming’ the land, the landowner can claim and retain agricultural subsidies and continues to farm the land for Inheritance Tax purposes. Generally, either party can end the licence on very short notice.
A Farm Business Tenancy (FBT) is usually a longer-term arrangement where the tenant is granted exclusive occupation of the land. FBT’s are governed by the Agricultural Tenancies Act 1995 and provide the tenant with; more security for a longer term, responsibility for maintenance of the land and the option to claim agricultural subsidies on the land.
As you can see, having a formal, written agreement in place is extremely important. As convenient as it may be to simply have a ‘handshake agreement’ in place, it may fall short for both legal and tax purposes.
Meanwhile, Farm Agents in our Yeovil office have just launched land to let. At Lopen, 19.2 acres is available on an FBT, whilst 24.59 acres of grass keep at Semley Hollow and 193.63 acres at Puxey are available here.
Symonds & Sampson’s Rural Surveyors across the region can advise on all matters relating to the sale, letting and management of your rural business. For further information or to arrange a meeting, please contact Ella in Axminster on 01297 33122 or our experts in your nearest office.