With the start of the 2019 grazing season fast approaching, now is the time to think about your grass and, when entered into correctly, grazing agreements can provide a mutually beneficial solution for both landowner and grazier.
Grazing agreements and the landowner:
A properly managed grazing agreement will allow landowners to continue to claim Basic Payment, obtain additional income from the land, hold protection against cross compliance breaches committed by a grazier and benefit from significant tax benefits.
Grazing agreements and the grazier:
Grass keep arrangements offer the grazier an opportunity to benefit from the very best of the growing season without the cumbersome maintenance and management responsibilities associated with a tenancy.
However, Guy Wilson of Stags Wellington office warns that landowners should beware of arrangements purporting to be a grazing licence but which, in fact, fail to deliver the desired benefits when scrutinised. Such agreements could prevent a landowner from legitimately claiming not just Basic Payment but also valuable tax reliefs.
Should you wish to sell your grazing in 2019, formalise an existing agreement or would like to seek advice concerning a future arrangement, please contact Stags Professional Services to be put in touch with your local professional.
