Tees delighted to announce Partner promotion

Tees is pleased to announce the promotion of Alex Waples to Partner within the Commercial and Agricultural Property team with effect from 1st April 2025.

Alex has been with the firm for 10 years, joining in 2015. During that time Alex has shown exceptional legal skills and an unwavering dedication to client success, particularly for agricultural landowning clients including individuals, partnerships, corporate entities as well as landed estates.  Alex is also a key part of the firm’s renewable energy team and has led the team to great success with some noteworthy accolades.

Alex Waples is based out of the Cambridge office but covers a wide reach across the East of England. Alex specialises in sales and acquisitions of farms and agricultural land, acting for both landowners and developers on renewable energy transactions, acting mainly for landowners on strategic land development schemes and advising on farming partnership agreements.

Recent work highlights include:

  • Acting for one of the world’s largest renewable developers on a 50MW co-located solar and battery storage scheme.
  • Acting as primary solicitor on a 3,000-acre solar and battery Nationally Significant Infrastructure Project (NSIP) for 9 landowners.
  • Acting on a farm purchase to consortium buyers with overage provisions and a headline sale price more than £9m.
  • Acting for a landowner in the sale of a fully consented residential development site in excess of £18m.
  • Acting for a developer in the acquisition of a residential development site with a gross development value more than £20m.

Alex studied Law at the University of East Anglia and completed his LPC at BPP University in Cambridge in 2015, the same year he joined Tees.

Senior Partner, Catherine Mowat, expressed her enthusiasm, saying:

“I am absolutely delighted to welcome Alex to the Partnership at Tees. Over the past decade, Alex has become an invaluable member of our Commercial and Agricultural Property team, earning a reputation as a trusted expert in his field.

Alex embodies the qualities we seek in a Partner—proactive, highly knowledgeable, and approachable. His leadership and dedication to excellence set him apart, and I look forward to seeing his continued success and contributions to the firm.”

Alex shared his excitement about the new role, stating:

“I am truly honoured to join the Partnership at Tees. My approach has always been to put my clients first—understanding their priorities and being readily available to support them, no matter the issue.

I look forward to building on our strong Commercial and Agricultural Property team and continuing the growth of our renewable energy specialism, further enhancing our offering, and continuing to help our clients achieve their goals. This is an incredibly exciting chapter, and I cannot wait to get started.”

Tees has also announced seven other senior staff promotions across the firm: two to Senior Associate and five to Associate.
Promoted to Senior Associate
Promoted to Associate
  • Amanda Johnston (Medical Negligence – Bishop’s Stortford)
  • Georgina Wade (Medical Negligence – Bishop’s Stortford)
  • James Murray (Tax Team, Private Client – Bishop’s Stortford)
  • Kirsten Vincent (Residential Property – Brentwood)
  • Sophie Shirley (Private Client – Cambridge)

Solar farm development

Tees provides legal support to a landowner

Solar farms have become popular for landowners to generate income from their land and are part of the growing renewable energy sector. However, the process of setting up a solar farm can be complex. This case study highlights the importance of seeking legal support when developing renewable energy infrastructure to ensure that all necessary legal and regulatory requirements are met and to mitigate the risk of any disputes arising during the term of the lease.

If you are considering starting a renewable energy project on your land or have been approached about renewable energy development, it’s vital that you seek expert legal advice to ensure you protect your interests.

Alex Waples, senior associate lawyer, and the Tees renewable energy team acted for a landowner who wanted to install a solar farm on their land. Tees undertook due diligence to identify potential issues with the proposed site, negotiated and completed the lease and any necessary easements, and provided ongoing advice throughout the term of the lease.

Due diligence

Alex and the renewable energy team undertook a detailed review of the title documents, as well as a detailed review of various searches commissioned against the proposed solar farm site.

The purpose of the review is to identify any potential issues. For example, a parcel of land may be burdened with a historic covenant preventing the building of a structure in, over, or under the parcel of land in question. Any such covenant could significantly affect the site’s efficacy, and various design changes may need to be made to accommodate it.

 Option agreements and lease negotiation

Alongside due diligence, the early stages of a transaction involve negotiating and exchanging an option for the lease and for any required easements.

Alex provided legal assistance in drafting the option agreement that granted the solar farm company the right to lease the land to install solar panels. He and the renewable energy team also negotiated the lease terms on behalf of the landowner, reviewing and drafting the lease agreement to ensure that it complied with relevant laws and regulations and represented the client’s best interests.

Once the funding is secured and the site is satisfactorily viable, the options are triggered, and the transaction can proceed to installation. The lease must afford sufficient solar farm installation rights, including access to neighbouring land.

Completion of the lease and easements

With funding, Alex arranged for the options to be triggered and completed the lease and the necessary easements. With the lease and easements in place, the installation of the solar farm could start.

Ongoing advice

During the lease term, The Tees legal team was available to provide ongoing legal advice. Tees’ dispute and resolution team provided tailored advice on exercising the tenant’s rights. They can advise on triggering any option to renew the lease or, alternatively, deal with any transaction whereby the tenant wishes to dispose of their interest in the solar farm, that is, by way of assignment.

If any disputes arise during the lease term, the dispute resolution team will provide expert advice to achieve the most commercially practical outcome.

If you are considering or if you have been approached about renewable energy development, contact our expert legal specialist today.

Tees solicitors celebrate Agricultural Law Association fellowships

Two of Tees’ Agricultural team Alexander Waples and Chris Claxton-Shirley have recently achieved Fellowship of the Agricultural Law Association (ALA).

The Agricultural Law Association is the UK’s largest inter-professional organisation devoted to the law and business of the countryside.

The course included topics such as property, tax, regulatory issues, and important legal issues that affect farmers and rural business across England and Wales. Gaining Fellowship status is the highest qualification possible.

Alexander Waples in the commercial and agricultural property team, having worked with Tees since 2015. He acts for a wide range of landowning clients, including individuals, partnerships, corporate entities as well as landed estates. Alexander is also a key part of the Tees’ renewable energy team.

Chris Claxton-Shirley, in the Private Client team, advises on a range of issues from succession and tax planning to the administration of estates.

Partner Letty Glaister, who heads up the Agriculture Team, said; “This is great recognition of Tees’ dedication to the agriculture legal sector and ensuring our experts have the in-depth knowledge needed to advise our rural clients.

“The agricultural community is an integral part of our firm and having solicitors with the Fellowship title shows we are constantly investing in learning so that we can provide the high-quality service our clients expect.”

Membership of the ALA is open to anyone training or qualified in the advisory professions and to others with an interest in the subject. The ALA exists to promote the understanding and development of the law and practice in agriculture, environment, food, and related issues and to provide a forum for professionals serving those sectors – lawyers, surveyors, accountants, bankers, farm business consultants and others – to support each other in their specialisms.

Tees new Senior Wealth Planner now settled and seeing clients

Tees Financial Ltd has recently welcomed Senior Wealth Planner David Blackman, a role with a key focus on working with the farming community – a first for the firm.

Tees has a long history of working with farming families, going back 100 years, but before now, we’ve not had a senior financial adviser on board who specialises in this area.

With over 32 years of experience in financial services, David is passionate about helping all clients through life events, with a real interest in planning tax efficiency for agricultural businesses and owners. Tees’ financial advisers work with clients to help them pass on their farm and land assets to the next generation in a well-planned and tax-efficient way. This includes taking advantage of Inheritance Tax reliefs (IHT), Business Property Relief (BPR) and Agricultural Property Relief (APR).

Part of David’s role is to help farming businesses make any necessary adjustments in investment activities and to encourage the use of Trusts and other ownership structures to ensure assets can be passed on tax-efficiently.

David is looking forward to advising more clients and said “It’s important that farming families think about putting appropriate plans in place. It can all be confusing with so many options out there, so I’m here to make sense of it all for our clients and advise on the best ways to protect assets and plan for the future. This includes help on pension and retirements too.”

David has a breadth of experience in providing finance advice to the rural community and has joined Tees after previously working for NFU Mutual – a Farmers’ Union insurance composite, so he fully understands the needs and complexities involved in agricultural land ownership and business. As a Chartered Financial Planner and a Chartered Associate of the London Institute of Banking and Finance, David is also able to advise on protecting family wealth and ensuring financial stability in the future.

I am passionate about helping clients to achieve their goals and it’s so important to me to grow relationships with my clients by regularly reviewing financial plans, instead of just being very transactional. That’s what I love about the job.”

Our specialist financial advisers are based in several sites including Essex, Cambridgeshire and Hertfordshire, but can help anyone in the UK.

If you would like to find out more about our services or speak to David directly, call our team on 080o 015 1165.

Tees advises on the purchase of over 230 acres of land and an industrial site

Looking back over the last 12 months; Tees are thrilled to have advised longstanding clients, R S Coleman and Schwier Farms Limited, on their joint purchase of over 230 acres of arable land and a muti-let industrial site in Essex in December 2022.

Simon Dixon Smith of Land Partners acted for the purchasers from an agency perspective and Paul Walker of Whirledge & Nott was the sellers’ agent.

Paul Walker stated:

This sale was one of the largest areas of land offered to the market in the Rodings area for some time. Strong local interest was expected, especially from neighbours many of whom are well known by the vendors and themselves valued clients of W&N. Confidentiality and an understanding the parties’ objectives and sensitivities is always paramount but even more so in this case, given the personal connections. The strong professional relationship between the respective agents and solicitors greatly helped in navigating the complexities of this transaction to keep all parties aligned through to completion.”

From the legal side; Partner, Daniel Fairs of Tees’ Rural and Commercial Property team, took the lead in advising both purchasers on all aspects of the transaction. A third party was also involved in this and purchased a third parcel.

A number of complications arose during the transaction; including unregistered land, overage in favour of the Seller, bank funding, and the separate parcels of land needed rights over each other. Further elements to this transaction, related to a Farm Business Tenancy and a Pre-emption Agreement with all elements needing to be completed at the same time as the purchase.

Daniel was able to navigate all the complications and issues and advise the clients through the purchase, resulting in an excellent outcome for all involved.

Daniel Fairs commented:

“The Coleman and Schwier families have been clients of Tees for a number of years, and I have worked closely with the clients for the last 4 years to understand their farming business. I was delighted to have advised the clients in connection with this complex purchase and worked closely with all the professionals to get this deal across the line. I hope to continue supporting the clients with expanding their business from both a farming and diversification point of view in the future.

Coleman and Schwier families commented:

We can’t speak highly enough of Daniel Fairs of Tees. We have used him for a variety of different cases, and we have always been pleased with his work. Daniel takes the time to explain things in layman’s terms, helping to clarify any and all points that can be lost in the translation of legal documents. We were also impressed with the solutions Daniel proposed to complicated situations that arose during the cases that he has taken for us. Daniel is an excellent solicitor, and we would thoroughly recommend him.”

Guide to farm diversification opportunities after the Basic Payment Scheme (BPS)

The post-BPS era has brought about significant changes in the agricultural landscape of the United Kingdom. Whilst there are several different grants and schemes available to landowners, farm diversification is a viable strategy to secure financial stability and thrive in the changing environment, as farmers face the challenges of adapting to this new reality. This article will explore farm diversification, examining the legal considerations and opportunities for farmers in the post-BPS era.

Understanding farm diversification

Farm diversification refers to the practice of expanding agricultural operations to include non-traditional activities or ventures. By diversifying their income streams, farmers can reduce reliance on the uncertain profitability of traditional farming practices and mitigate the impact of the loss of BPS.  However, it is important to note that farm diversification can involve legal complexities that must be carefully navigated to ensure compliance with regulatory frameworks.

Guiding you through diversification opportunities

Our Agricultural team at Tees can play a crucial role in assisting farmers in enabling and advising on potential diversification opportunities. We have an in-depth understanding of the legal and regulatory frameworks governing various sectors, enabling us to guide farmers through the process alongside their accountants and land agents. Some common avenues for farm diversification include:

Renewable energy projects: With the increasing demand for clean energy, farmers can explore opportunities in wind, solar, battery, biomass energy or anaerobic digestion. Our renewable energy team can assist by advising on contracts, options and leases including addressing planning and environmental mitigation schemes.

Agri-tourism: Many farmers have found success by opening their farms to the public and offering attractions such as farm tours, educational workshops, camping, glamping or other farm-stay experiences. Our team of solicitors can help you navigate the related regulations,  liability, health and safety and business structures including commercial agreements and terms and conditions.

Food and beverage production: Value-added activities such as on-site food processing, artisanal products or farm shops can provide additional revenue streams. We can assist in establishing appropriate business structures and ensuring compliance with food safety regulations.

Rural recreation and leisure: Using farm assets for activities such as nature reserves, fishing lakes, equestrian centres, adventure parks, events, festivals and secure dog walking fields can attract visitors and generate income. We can help farmers address legal matters related to liability and public access rights, as well as advice on commercial agreements and terms and conditions.

Natural resources: Biodiversity Net Gain can offer alternative income streams for farmers.  Our Natural Capital Team can assist with drafting and negotiating long term Farm Business Tenancies (FBT’s) for Biodiversity Net Gain and Woodland Carbon Units, negotiating documentation for landowners documenting arrangements with habitat bank providers including FBT’s and Habitat Management Agreements, dealing with Section 106 Agreements where offsite offsetting is being provided for development sites getting approval of lenders to enter into such agreements where land is charged to a bank.

Legal Considerations when diversifying your farming business

Engaging solicitors familiar with agricultural law is essential for farmers pursuing diversification projects. Here are some legal considerations we can assist with:

  • Considering the tax implications with your accountant, both on terms of taxation of income streams and capital taxes is vital. Our property and commercial team can assist with implementing tax advice given by re-structuring business and finance and/or moving land and assets into separate legal entities.
  • contracts and agreements: developing robust contracts is vital when engaging in activities such as leasing land for renewable energy projects, negotiating supply agreements, or partnering with third-party businesses. Our commercial  team can ensure the protection of farmers’ interests and avoid potential disputes.
  • regulatory compliance: diversification activities are subject to a range of regulations, including health and safety, environmental protection, food safety, and licensing. Our regulatory team can guide farmers in meeting compliance requirements and reducing legal risks.
  • intellectual property: farmers involved in product development or branding should consider protecting their intellectual property through trademarks, copyrights, or patents. Our commercial team can assist in securing these protections and enforcing them if necessary.
  • succession planning: farm diversification often involves long-term investments. We can help farmers navigate succession planning, ensuring a smooth transition of assets and business operations to future generations running the business.

Considering leasing your land for a solar farm project?

Solar farms are one of the fast-growing renewable energy initiatives which are springing up across the country. Solar developers are constantly looking for land to build new solar projects on, so if you are a landowner with some unused land, this gives you the opportunity to lease your land and diversify your income, usually by way of a rental income over a fixed period of years.

Solar farms, also known as solar fields or solar parks, are the large-scale application of solar photovoltaic (PV) panels to generate green, clean electricity at scale, usually to feed into the national grid. Solar farms can cover anything between 1 acre and 250 acres and are usually developed in rural areas.

Approximately 25 acres of land are required for every 5 megawatts (MW) of installation – see our checklist below to find out if your land may be suitable.

As well as providing you with an additional income stream, there are a host of other environmental benefits associated with solar farms. Embracing solar farms as part of your land diversification strategy contributes to a sustainable and prosperous future both for you, your family and society as a whole.

What are the benefits of solar farm land diversification?

  • Stable income – leasing or selling the land for solar farm development provides an increased, diversified and stable source of income for you as a landowner. This can enable financial security and potential long-term revenue streams.
  • Reversible land use – solar farms represent a time-limited, reversible land use option for landowners. Unlike permanent infrastructure, such as buildings or roads, solar farms can be decommissioned relatively easily, allowing the land to be repurposed for other agricultural or developmental activities in the future.
  • Efficient use of land – one of the remarkable aspects of solar farms is their ability to generate substantial electricity while occupying a relatively small portion of land. For instance, installing 10,000 megawatts (MW) of solar capacity on the ground in the UK would only utilize 0.1% of the country’s agricultural land area. Despite occupying a small fraction of available land, this solar capacity could generate enough electricity to power over 3 million homes. This efficient land utilisation allows for the coexistence of agricultural activities alongside renewable energy generation.
  • Significant energy generation and carbon reduction – solar farms have a significant impact on energy production and carbon reduction. With every 5 MW of installed capacity, a solar farm can annually power more than 1,500 homes. Considering the average annual household electricity consumption of 3,300 kWh, this represents a substantial contribution to meeting energy demands. Moreover, the environmental benefits of solar farms are evident in the reduction of carbon dioxide (CO2) emissions. A solar farm with a 50 MW installation can save approximately 21,500 tonnes of CO2 annually, contributing to mitigating climate change and improving air quality.
  • Grid resilience and energy independence – distributed solar farms across various locations contribute to grid resilience and energy independence. By decentralizing energy generation, solar farms reduce the dependence on a single centralized power source, minimizing the risk of widespread outages. In cases of extreme weather events or natural disasters, solar farms can continue to generate electricity, providing essential power supplies to nearby communities. This resilience helps ensure a stable and reliable energy infrastructure.
  • Land conservation and biodiversity promotion: solar farm land diversification can be designed to incorporate conservation measures, supporting local ecosystems and biodiversity. By implementing pollinator-friendly vegetation, such as wildflowers or native grasses, solar farms can serve as habitats for bees, butterflies, and other beneficial insects. These efforts contribute to the preservation and restoration of wildlife populations, enhancing biodiversity in the surrounding areas. Additionally, by preventing agricultural land from being converted into urban or industrial areas, solar farms can play a role in conserving valuable natural resources.
  • Community and economic development: Solar farms can have a positive impact on local communities by fostering economic development. During the construction phase, solar farms create job opportunities, providing employment for local workers and boosting the local economy. Furthermore, solar farms can establish partnerships with neighbouring communities, supporting educational initiatives, renewable energy awareness campaigns, and community-based projects. This collaboration promotes a sense of ownership and involvement in the transition to clean energy, creating a more sustainable future.

Is my land suitable for a solar farm?

This checklist gives a guide as to the likely suitability of your land for a solar farm project and things you should consider:

  • Is the land flat? If not, what is its gradient and orientation? The incline of the proposed land impacts the ease of building and access.
  • Is there access to the site? Roads and paths will be essential for construction vehicles and crews to enter and exit the construction site. As part of the solar project, the developer may wish to install accessways or enlarge what is already there.
  • Is the ground rocky? How deep is the topsoil? Rocky ground may be more challenging to build on or insert ground mounts into. Topsoil depth also affects the structural stability of foundations.
  • Is the proposed location of the solar panels in an Area of Outstanding Natural Beauty (AONB) or a national park? It is unlikely that a solar farm will receive planning consent if it is located within either of these two categories of land.
  • Can the field be seen from a road? If the site is visible from the road there may be additional planning considerations due to the perceived impact on the visual amenity of the area which refers to the views and surroundings that comprise the backdrop to an area.
  • Is there any substantial energy consumption on the premises? You need to factor in whether the proposed solar farm is being considered for powering and offsetting the electricity bills of commercial premises.
  • Where is the nearest substation/power connection? Proximity to a substation or power connector is desirable because voltage drop/power losses through power cables increase with distance. The size of the power line is also important: a 33kVa line or above is ideal, however 11kVa lines are also suitable. A developer will need rights to install cabling under your land (and potentially under neighbouring land). In addition, they may well need rights to allow the installation of a new substation on your land.
  • Is there any existing solar PV installed on the property currently? Installing a new system on a property where one already exists may have an impact on the feed-in tariff eligibility of the first system. Additional electrical connection considerations will also apply to a second system.
  • Are there any substantial solar PV or wind farm installations nearby? Receiving permission to connect to the grid may depend on the state of the network in the region of the proposed installation. An already high penetration of solar power or wind (both types of ‘distributed generation’) may affect the ease of granting a grid connection permission.

How does the leasing on a solar farm work?

As a landowner, typically you will receive rental income on the leased land, in exchange for a rental income for a fixed number of years – usually around 30 years. Rental payments are index-linked, rising annually with inflation and made in advance from the point at which construction of the site begins.

How Tees can help

The experienced renewable energy team at Tees can advise both developers and landowners at every stage of the property aspects of a solar project. This includes all stages from the early lease negotiations, through to helping secure funding and offering ongoing assistance with the operation of the solar site throughout the term of the lease.

NFU confirms appointment of its legal panel firms in East Anglia

The NFU has confirmed the outcome of its 2022 review of legal panel firms, with two firms reappointed to the panel in East Anglia.

Tees and HCR Hewitsons have been reappointed after a review that assessed the firms’ legal services, engagement with the organisation and its members, as well as feedback from NFU members and staff.

NFU director of policy Andrew Clark said: “The legal panel is an important feature of the NFU’s legal services offering to our members and I am delighted to confirm the reappointments.

The NFU’s panel firms are committed to supporting NFU members and have clearly strengthened their agricultural and rural teams over the past few years. Their broad expertise is highly valued by our in-house legal team and NFU members.

Tees has been reappointed to help members farming in Essex, Hertfordshire and Suffolk. Partner Caroline Metcalf said: “We are pleased to have been selected to be on the NFU legal panel again. Being selected really demonstrates Tees’ depth of legal knowledge and expertise in agricultural and rural issues.

The firms appointed to the legal panel offer a comprehensive legal service encompassing all areas of law relevant to farming and growing, including succession planning, diversification, renewable energy, dispute resolution, planning, probate, family and conveyancing. In the latest financial year, the panel offered a total discount of over £500,000 to NFU members.

NFU legal board chair Nick Hamer said: “The aftermath of Brexit and the Covid-19 pandemic created several challenges for farming and growing businesses”

We are entering a period of transition for the industry and this undoubtedly puts the legal panel in high demand, providing expert advice to NFU members on a wide range of legal matters.

Tees Law appoints new Senior Partner

Tees Law, a leading regional law firm with offices across Cambridgeshire, Essex, and Hertfordshire, is thrilled to announce the appointment of Catherine Mowat as its new Senior Partner. Catherine becomes the firm’s eighth Senior Partner in its 108-year history and the first woman to hold the position. She succeeds David Redfern, who will continue as a Consultant and Non-Executive Chairman of Trust Tees Ltd and Tees Financial Ltd.

A career of dedication and growth

A dedicated member of the Tees family since 1998, Catherine began her career as a trainee in the Bishop’s Stortford office. During her training contract, she had the opportunity to work alongside former Senior Partners Rodney Stock in Commercial Property and Richard Tee in Private Client. It was within the Private Client department that Catherine found her passion, which has shaped her career ever since.

After qualifying as a solicitor in 2000, Catherine became a Partner in 2007. Her career progressed swiftly, and from 2005 to 2008, she balanced a demanding caseload while earning an MBA in Legal Practice. In 2009, she transitioned to the Cambridge office, becoming Head of Office the following year, leading the team for four years.

Expertise in private client law

With over 20 years of experience in Private Client law, Catherine specializes in complex estate administration and succession planning. Her expertise spans wills, powers of attorney, and succession planning for rural clients and high-net-worth individuals. She has also developed significant experience in high-value professional deputyships, often acting as a professional deputy, executor, trustee, and attorney. Under her leadership, the Private Client team in Cambridge has grown substantially, achieving a seven-figure turnover.

Leadership and contributions

In addition to her leadership in Cambridge, Catherine has served as a Director on the firm’s main board, Trust Tees Plc, since 2018. She also contributes to the management of the Private Client department across Tees’ six offices and is a key member of the Cambridge office leadership team.

Life beyond the office

Outside of work, Catherine lives near Saffron Walden. She has a passion for music, singing in local choirs, and serving as a trustee for several charities.

A vision for the future

Reflecting on her appointment, Catherine shared, “It is an enormous privilege and an exciting challenge to take on this responsibility. Tees has grown and evolved over the years, but our core values of empathy, clear communication, and collaboration remain unchanged. As Senior Partner, I aim to uphold these values and ensure they continue to guide everything we do.”

She added, “In a rapidly changing world, agility and adaptability are key. The pandemic underscored our ability to embrace new technologies and hybrid working practices. Moving forward, we must remain open to opportunities and use challenges as a catalyst for growth.”

A fond farewell and exciting future

Ashton Hunt, Group Managing Director at Tees, expressed gratitude for David Redfern’s leadership. “David’s unwavering dedication over his 38-year career has been instrumental in making Tees the successful firm it is today. We are deeply grateful for his contributions and are pleased that he will remain involved as a Consultant and Non-Executive Chairman.”

Ashton continued, “Catherine’s extensive experience and dedication make her an excellent choice for Senior Partner. I have no doubt she will lead Tees to even greater success. We are excited for the future under her leadership.”

Tees Law looks forward to the next chapter, guided by Catherine’s commitment to excellence and innovation.

 

Advice to young farmers on taking over the family farm

If you’re a young farmer who is in line to inherit your family’s business, taking the farm successfully forward into the next generation can feel overwhelming.

In this guide, we provide you with an overview of the many ways you can prepare yourself to run the family business, embrace new methods of working and protect the farm both legally and financially.

Open up conversations about succession

While talking about money and inheritance can be uncomfortable, it’s important to open up these conversations early on so that everybody’s expectations and positions are clear. Succession planning is important for any family business, but broaching the idea within farming families can be particularly difficult, with the current business owner often reluctant to relinquish control to a successor.

According to a study, less than a fifth of farmers plan to ever fully retire, while only half of those with children have identified a successor. Indeed the UK Government recognises this as a problem, to the extent that it has set up a new scheme to pay older farmers to retire, enabling the younger generation to enter, bringing with them new farming methods and breathing new life into the business.

Even if the current owner of your family’s business has no plans to retire, it’s still important to plan for the unexpected and to ensure that the legal and financial framework has been put in place to enable you to take over the business in the event of their death.

If your parents are unwilling to enter into these types of conversations with you, our rural legal specialists can help you facilitate positive discussions by explaining the benefits of succession planning and assisting with essential aspects of estate planning such as drafting Wills, providing Inheritance Tax (IHT) advice, introducing the possibility of making lifetime gifts and placing life insurance benefits in trust.

Key succession planning questions

If you’re unsure of where to start, here are some good questions you can use to open up productive conversations around succession and the future of the family business.

  • What are your parents’ future plans? Do they plan to retire? If so, can you work with them and take on more responsibility so they are able to slow down in their later years? If not, is there another way for the two generations to satisfactorily work together in the long term?
  • Who will live where? Does the farm have a number of properties which can accommodate the family?  If so, try to have an open discussion with all family members about preferences for the future.
  • What training and skills development do you need to undertake in order to prepare for succession? Your parents may be nervous to hand over the farm if they do not believe you yet possess the skills to take the farm forward successfully.
  • It’s likely your parents will not want to split up the farm, so if you are in line to inherit, what provision will need to be made for your siblings, if you have any?
  • How will your family’s land and business assets be passed down with the minimum Inheritance Tax liability?
  • What role do you, your parents and your siblings want to play, now and in the future? Do your siblings want to be involved in the farm or are they happy for you to take it over? It’s important to nail the details down now to avoid conflict later down the line.

Draw up a partnership agreement

If the farm owner is not ready to retire, but you are still looking to take a more active role in the business in order to develop your knowledge and skills, you may wish to consider a Partnership Agreement.

Having a partnership agreement in place allows clarity regarding the ownership of business assets and enables families to clearly define the roles each partner will play in the day-to-day management of the farming business.  Holding assets within the partnership can sometimes also be a useful tax planning tool.

Our expertise is in helping farming families draft comprehensive partnership agreements, and to advise on any issues that may arise in the duration of the partnership (for example, helping to handle disputes, or managing change within the partnership, e.g. if one of the partners leaves the partnership or dies).

Consider diversifying

Whether they want to or not, many farming businesses are having to diversify and find new and sustainable sources of income to ensure the farm’s survival in the modern era. According to Defra, 66% of farms across the UK have already diversified in some form to provide farming families with the additional income they need and support the rural economy.

This may take the form of using unused outbuildings to set up farm shops or professional services spaces, hosting tourism accommodation, or setting aside land for recreational uses, such as horse riding or golf courses.

Funding a new venture is often expensive, which can prove a barrier to successful diversification. In addition to commercial loans and private finance, you may be able to access funding from initiatives such as the Rural Development Programme for England, which provides money for diversifications that will have a positive impact on the environment.

At Tees, we regularly advise farming families on a wide range of diversification projects, ensuring they meet any new legal and regulatory requirements to which they may become subject in the course of their new venture – for example, planning permission, or the acquisition of special licenses or certificates.

Get familiar with new post-Brexit funding

The EU system of grants and subsidies to British farmers is being phased out from this year and replaced with a new series of Environmental Land Management schemes that reward farming businesses for the provision of ‘public goods’, i.e. implementing more sustainable farming methods or working to restore habitats and the environment.

Understanding the types of initiatives rewarded by the new system will help you guide the business in the right direction and enable you and your family to more effectively plan for the future.

They include (but are by no means limited to):

  • Natural flood management measures
  • Restoring habitats and environments
  • Forest and woodland creation
  • Opening up public access to the countryside
  • Improving soil health
  • Improving air and water quality.

More information about the post-Brexit Environmental Land Management schemes can be found here. The gov.uk website also gives an overview of other grants and payments currently available to agricultural businesses.

Take specialist advice

For many young farmers, the thought of taking over the family farm is exciting, but overwhelming. But you don’t have to do it alone. Our agriculture and estates specialists offer legal and financial services across a broad spectrum of specialisms, including Wills, Trusts, Tax & Probate, Corporate, Commercial Property and Wealth Management.

We have been helping farming families successfully transfer their business from generation to generation for over a century. For advice on planning for your future, don’t hesitate to get in touch.