Creating and administering agricultural partnerships isn't always as straightforward as many people believe, and for that reason, it is essential that those involved seek legal advice from a team of specialist agricultural business solicitors, who have in-depth knowledge and understanding of the industry.
Lanyon Bowdler is proud to be an NFU panel law firm possessing years of experience in advising farmers and their families, both in personal and business contexts. As such Lanyon Bowdler has developed extremely close ties with the local farming community in and around Shropshire, Herefordshire, Staffordshire, Mid and North Wales.
Our farming solicitors will be able to help you whether you want to create a new partnership, or put in place succession planning to ensure the future of your business and its smooth passing down through the generations.
Owners and occupiers of agricultural land have long trusted Lanyon Bowdler with their legal work and the firm has taken great satisfaction in watching those clients develop, diversify and succeed.
We recognise that there are challenges which are unique to the agricultural sector which is why our solicitors provide both specialist legal advice for farmers and agricultural workers alike, as well as a well-rounded and pragmatic approach. We pride ourselves in offering friendly support to our clients and caring for them through their good times and where they face times of challenge.
Having a robust agricultural partnership agreement drawn up is essential in protecting the interests of all parties and for maintaining a clear business focus, particularly when the partnership involves members of the same family.
Many families often feel that a formal, legal agreement is unnecessary when it comes to their farming business, but this leaves the way open for disputes and misunderstandings to arise.
The specialist team at Lanyon Bowdler can advise on partnership formations and are able to prepare partnership agreements to meet your specific requirements. We take great pride in forming excellent working relationships with our clients and their families to ensure clarity and the concurrence of everyone involved.
Some of the most important considerations to be taken into account when forming an agricultural partnership include:
This will include any land, equipment, entitlements and intellectual property relating to the business.
This will include financial investments, land transfers and roles and responsibilities in relation to the running of the business.
The decision-making process and voting rights will need to be agreed upon beforehand. Decisions are usually taken by a simple majority, but alternative agreements can be drawn up for various situations. The circumstances in which new partners can be introduced should also be stipulated.
It is vital a suitable exit strategy is considered for one or more partners, plus the way in which assets will be valued and divided requires careful consideration to avoid future disagreements and conflict. This will cover what happens in the event of the death of a partner, or if a partner wants to leave, as well as whether a partner can be expelled and what provisions will be in place in the event of long-term illness.
The agricultural team at Lanyon Bowdler are able to advise on all legal aspects of your agreement, negotiating the complexities and providing workable solutions for every eventuality so that the business can progress efficiently and effectively.
Having a legal agricultural partnership agreement in place is also essential for ensuring your farming business can capitalise on inheritance tax exemptions. If it isn’t clear whether the land, buildings and farmhouses involved in the business are part of the partnership, this will have a potentially devastating impact on the eligibility to claim Agricultural Property Relief, leading to huge tax bills and the possible need to sell the farm business.
The experts at Lanyon Bowdler have a wealth of experience negotiating tax exemptions with HMRC and can help you navigate the complexities of this complicated area of the law.
The specialist agricultural solicitors here at Lanyon Bowdler are based across the firm’s offices in Shrewsbury, Bromyard, Conwy, Hereford, Ludlow, Oswestry and Telford, so are well-placed to work with clients across Shropshire, Herefordshire, Mid & North Wales as well as beyond.
For more information about how we can advise you on all areas of agricultural partnerships, speak to our experts today. Call us today or complete our online enquiry form.
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