Legal newsletter for the Agriculture Sector including articles on permitted development rights available for agricultural buildings, Estate planning for the agricultural sector and a Health and Safety Executive spotlight on the agricultural sector.

1. Law Update
Summer 2018
rollits.com
Agricultural

2. Direct subsidies are falling and it
appears are likely to fall further. The
trend for larger farming units would
appear inevitable. However the
possible cap on Basic Payments or any
successor’s direct payments may hinder
the profitability of larger farm units.
The issue of migrant workers, so
important in certain areas are still to be
resolved. Already there is a drift away of
workers. Subsidies for renewable projects
are also likely to change materially.
Farmers are also facing uncertainty
in other areas; fracking; the surge
of vegan militancy and increased
publicity about animal welfare
standards; government housing policy
and much more.
The comfort is that the population
has always needed food and that will
continue. That perhaps is the only
major certainty.
We at Rollits cannot claim to know what
the future holds in store for the Sector
but we do have a dedicated Agriculture
team that will keep itself briefed and
ready to respond to change. We have
done that since 1841 and have no
intention of changing our commitment
to the Sector.
Neil Franklin
2 Agricultural Focus Summer 2018
Few certainties in
an uncertain world
All businesses need to plan for the future. At present that is
particularly difficult for farmers. The Agriculture Sector is likely
to be affected more than many other industries in the UK by
Brexit and there are many other issues facing farmers too.

3. Summer 2018 Agricultural Focus 3

4. A reminder of the
permitted development
rights available for
agricultural buildings
and land
4 Agricultural Focus Summer 2018

5. However, an express application for
planning permission is not required
if planning permission is deemed
to be granted under the permitted
development rights, which automatically
grant deemed planning permission for
specified changes of use and building
works. The permitted development rights
are set out in various classes in the Town
and Country Planning (General permitted
Development) (England) Order 2015.
The following permitted development
rights are available for agricultural land
and buildings:
1. Class A – development of an
agricultural unit of five hectares or more.
2. Class B – development of an
agricultural unit of between 0.4 and
five hectares.
3. Class C – mineral working for
agricultural purposes.
4. Class Q – change of use of an
agricultural building and any land within
its curtilage to dwellinghouse(s). This
class also permits any building works
reasonably necessary to convert the
building into a dwellinghouse(s). Note
there are restrictions on the number of
dwellinghouses which can be built.
5. Class R – change of use of an
agricultural building and any land within
its curtilage to various commercial
uses, including shops, financial and
professional services, restaurants and
cafes, business, storage and distribution,
hotels and assembly and leisure.
6. Class S – change of use of an
agricultural building and any land within
its curtilage to a state-funded school or
registered nursery.
Each of the permitted development
rights has exceptions, whereby the
permitted development right will not
apply, and conditions which must be
complied with when exercising the right.
These conditions may include making
an application to the local planning
authority to determine whether their prior
approval is required for any transport and
highways, noise, contamination, flooding
or location and siting issues.
When seeking to rely on a permitted
development right, it is important to
check that the permitted development
right in question has not been withdrawn
by the local planning authority by
an Article 4 Direction. If an Article 4
Direction is in place, then deemed
planning permission is no longer granted
and an express planning application must
be made.
If planning permission is not required,
building regulations approval will still be
required for any building works and it is
important to check whether any other
consent is required for any works, such as
the consent of a lender.
Libby Clarkson
Summer 2018 Agricultural Focus 5
Planning permission is required for the carrying out of any “development” on
land, which is defined in the relevant legislation as the “carrying out of building,
engineering, mining or other operations in, on, over or under the land or the
making of any material change in the use of any buildings or other land”.

6. When a plan is registered at the Land
Registry, the boundaries shown are
general boundaries and may not
accurately show the extent of the
boundaries as they are on the ground. A
plan is generally based on the Ordnance
Survey map which was in existence at the
time the land was registered. However,
the better the plan submitted to the Land
Registry, the greater the chance of the
final title plan accurately showing the
boundaries to the property.
Key points for consideration on all
plans include:
• the plan must include a scale in a
metric measurement
• it must show an orientation
• it must show sufficient detail to be
identified on the ordnance survey map
• the general location should be
clarified by reference to roads or
other landmarks
• the plan should not generally be stated
“for identification purposes only”
• it must include a bar scale.
Additional consideration must be given
to floor plans etc. to ensure that they
clearly identify the extent of the land
within a larger building.
Therefore, whilst not always high up on
the list of priorities when considering
selling or otherwise dealing with a
property, the importance of a good
quality plan cannot be understated and
in order to avoid delays and complexities
occurring in the future, a Land Registry
compliant plan should be made a priority
when dealing with land.
Gareth Orriss
6 Agricultural Focus Summer 2018
Always have a plan…!
A good quality plan is essential when applying to register deeds and other
documents at the Land Registry. Not only do they reduce the prospect of
applications being rejected or requisitions being raised, they also reduce the
possibility of future disputes. Historically, many conveyances contained plans
which were of a poor quality or which were missing key information such as
a scale etc. When such plans are submitted to the Land Registry, they can
cause problems, particularly in rural areas where there are no clear landmarks
to identify the land. In certain circumstances, a verbal description of the land
may be acceptable to the Land Registry but particularly in respect of parcels
of land which cannot be easily identified by reference to the Ordnance Survey
Map (which can in many circumstances include agricultural and rural land) a
good quality plan will be necessary.

7. Summer 2018 Agricultural Focus 7

8. It may be some time since you reviewed
your Will and personal affairs. If you have
a change in family circumstances, then
you should consider whether you need
to make any changes to your Will. For
example, if any of the Executors named
in your Will die, or become incapable or
unsuitable to act then you may wish to
consider appointing different individuals
or substitutes, or if you have had children
or grandchildren since making your last
Will, you may wish to consider making
specific provision for them. You may
wish to look at succession planning
for the next generation and how to
balance the different interests of those
family members who wish to take on the
farming business in the future, and those
who do not.
If you have since married or entered
into a civil partnership, then it is likely
that your current Will has been revoked.
If you have since been divorced, then
any provisions relating to your former
spouse/civil partner in your Will are
treated as being automatically cancelled.
In such circumstances you will need to
make a new Will.
There is also the possibility that you
may require care in the future and you
may wish to consider making Lasting
Powers of Attorney if you become
unable to manage your own affairs.
There have been a number of recent
inheritance tax changes including the
introduction of the Residence Nil Rate
Band. If you require any inheritance tax
planning advice, including the availability
of Agricultural Property Relief and
Business Property Relief on your farming
business, then please to not hesitate to
get in touch with us.
Our Private Capital team can assist you
with the preparation of wills, the creation
of trusts and care home fee planning.
We regularly advise farming families on
a range of private client issues including
estate and succession planning, the
avoidance of family disputes on death
and putting measures in place in the
event that an individual requires care.
John Lane
8 Agricultural Focus Summer 2018
Estate planning for the
agricultural sector
Taking time to plan for unexpected events such as death, divorce, disability or
diversity is essential for farming families and can help to reduce stress, save
costs, and resolve conflicts among family members during times of trauma and
family crisis. Planning ahead can just make things a little bit easier when families
are experiencing difficult times.
Please contact the head of our
Private Capital team John Lane
on 01904 688506, email
john.lane@rollits.com if you
require any information on how
we can assist you.

9. Summer 2018 Agricultural Focus 9
With the Courts now well versed in
applying sentencing guidelines that
came into force in 2016, the fines for
health and safety offences across
the board should continue to pose
significant concerns for the sector.
In April 2018, a farming partnership
was fined £400,000 and ordered to pay
£67,000 in prosecution costs after one
of their employees, a 19 year old farm
worker, died. The teenager was driving
a tractor hitched to a trailer carrying
25,000kg of grain which, the court found,
was four times the weight of the tractor.
The brakes failed and the teenager was
crushed as the tractor and trailer crashed.
The HSE identified several failings on
the part of the partnership, including the
placing of too much responsibility on
young farm workers to identify and report
defects with machinery, a reluctance to
prioritise the funding of maintenance of
machinery and inadequacies in training.
In recent statistics, the HSE has
reported that 29 agricultural workers
were fatally injured between April 2017
and March 2018, the highest rate of
all industry sectors. In its Intervention
Strategy, the HSE suggests that
businesses have greater involvement
with the farming industry safety
partnerships and it is to seek to publish
research that assists those in the sector
to identify any areas of particular risk
and push industry incentives.
Given the HSE’s current increased focus
on the sector, it has never been more
important to ensure that the health
and safety processes and procedures
for your business are up to date and
satisfactory. Submissions to the Court
that farming partnerships rely on trust
and the common sense of those that
work within the business simply do not
cut the mustard and are met with little, if
any, sympathy by the Court. Training, safe
practices and clear methods of working
remain crucial.
Jennifer Sewell
September 2017 saw the introduction of the HSE’s Agriculture
Sector Intervention Strategy. Due to the increased risk factors
associated with farming, forestry and fishing and the poor
health and safety record, the HSE has identified the Agricultural
Sector as in need of focused improvement. The Strategy cites
that 1% of the British workforce works in the sector whilst the
sector accounts for 20% of deaths within the British workforce.
Health and Safety Executive
spotlight on agricultural sector

10. 10 Agricultural Focus Summer 2018
The benefit of documenting
agreements within the family
Family tension, emotion and time has an unhappy knack of colouring and
altering recollections of what was said and what was intended – not only can
this lead to the destruction of family relationships but the consequential cost
of a dispute escalating into Court proceedings can be financially devastating
for everyone involved. The recent case of Thompson v Thompson
[2018] EWHC 1338 (CH) underlines the benefit of documenting Family
Understandings and Arrangements.

11. The Thompson case involved a farming
family, the farm comprised both
freehold land and other land held
under agricultural tenancies which
was acquired in 1989 by Norman and
Doreen Thompson. Sadly, Norman
Thompson died in 2012. Gilbert
Thompson (who brought the case
against his mother) was one of five
children. He was the only surviving son
and had worked on the farm for most of
his life. His sisters had moved away as
they grew older. By the time of dispute
Gilbert and his long-term partner were
living in the farmhouse and his mother
was living in a bungalow on the farm.
Following his father’s death one of
Gilbert’s sisters began to suggest that
Gilbert was not managing the farm well
and she challenged decision making in
relation to the farmhouse. The situation
became increasingly difficult. Gilbert
had no documentation to verify what
his parents had told him throughout
his life, that he would inherit the farm.
There had been no agreements drawn
up, and no land or property had been
transferred to him. It now appeared
that his sister was seeking to remove
him from the farming enterprise, and
his mother was intending to go back
on what Gilbert had understood and
trusted would happen on her death.
In 2014, Gilbert and his partner, having
returned from a holiday, were excluded
from the farmhouse.
Without documentation Gilbert’s only
option was to argue “propriety estoppel”
i.e. that he had relied on representations,
promises and assurances from his parents
that on their death he would inherit the
farm. As a result, he had acted to his
detriment in as much as he had worked
the farm from a young age at a low
rate of pay leaving him now unable to
purchase his own accommodation or
secure alternative employment. Gilbert
argued that it would be unconscionable
or plainly wrong to remove him from the
farm and for his mother to dispose of the
farm to anyone other than him.
Gilbert’s mother had agreed to her
son having a 1/3 share in the farm as
she felt that was fair. Her case raised
issues about her son’s abilities as a
farmer – describing him as “recklessly
negligent”. She maintained because
of this, no assurances were made to
Gilbert in relation to him inheriting the
whole of the farm. Unfortunately for
Gilbert’s Mother, notes taken by the
family solicitor and accountant during
meetings involving Gilbert’s father prior
to his death suggested otherwise. The
notes indicated that both parents wanted
the farm to go to Gilbert after their
death, for it not to be broken up, and
that they recognised that Gilbert had
worked hard on the farm for little return.
The court found Gilbert’s evidence to
be honest and reliable, backed up by
the professionals’ notes. The judge was
convinced that Gilbert’s parents had
promised him the farm and that he had
relied on this to his detriment. In the
circumstances Gilbert’s mother was now
unable to go back on the promises made.
Although the court found in favour of
Gilbert, the practicalities of putting this
into place have yet to be addressed and
have been put off to another day. It is
anticipated that these issues may well be
dealt with by the family, without the need
for further court intervention.
Gilbert’s case highlights the importance
of ensuring that people consider their
succession plans, with their wishes clearly
documented. It is beneficial to seek
advice and take all necessary steps to
avoid considerable expense and lengthy
court proceedings later.
Gilbert’s case involved a fall out with
his mother and sibling, but what about
couples? What steps can they take?
Summer 2018 Agricultural Focus 11
Continues on next page…

12. Information
If you have any queries on any issues raised in
this newsletter, or any agricultural matters in
general please contact:
Neil Franklin on 01482 337250 or email
neil.franklin@rollits.com
This newsletter is for general guidance only
and provides information in a concise form.
Action should not be taken without obtaining
specific advice. We hope you have found this
newsletter useful, but if you do not wish to
receive further mailings from us please write
to Pat Coyle, Rollits, Citadel House,
58 High Street, Hull HU1 1QE or email
pat.coyle@rollits.com. For details of how we
use your personal information please refer
to our Privacy Policy by writing to the same
address or accessing our website at rollits.com
The law is stated as at 1 July 2018.
Hull Office
Citadel House, 58 High Street,
Hull HU1 1QE
Tel +44 (0)1482 323239
York Office
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Monks Cross, York YO32 9WN
Tel +44 (0)1904 625790
rollits.com
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Authority under number 524629
Rollits is a trading name of Rollits LLP. Rollits LLP is
a limited liability partnership, registered in England
and Wales, registered number OC 348965, registered
office Citadel House, 58 High Street, Hull HU1 1QE
A list of members’ names is available for inspection
at our offices. We use the term ‘partner’ to denote
members of Rollits LLP.
The benefit of documenting agreements within the family
(continued)
12 Agricultural Focus Summer 2018
Clarifying intentions prior to cohabitation
or marriage, may significantly reduce the
prospect of lengthy and costly litigation
when a relationship ends. It is strongly
advisable for couples, where they are
considering cohabitation to seek advice
on setting out their intentions, both
financial and child arrangements, in a
Cohabitation Agreement. Equally, upon
purchasing a property or in the event of
financial contributions being made to
an existing property, that a Declaration
of Trust is drawn up to regulate property
ownership, to minimise the potential for
dispute at a later point.
For those considering marriage, it
is advisable to consider Pre-Nuptial
agreements, which now carry significant
weight in circumstances where couples
seek to protect pre-marital assets and/or
seek to agree how marital wealth should
be divided upon relationship breakdown.
Whatever your relationship dynamic
may be, where finances are involved
it is always advisable to ensure that
agreements and understandings are
properly documented. Taking these
steps is smart financial planning.
Adrian Coggon