Farm Management Agreement Template for England and Wales

A Farm Management Agreement is a specialised contract that allows you to delegate the day-to-day operation of your agricultural property to professional managers while maintaining ownership. This arrangement is particularly valuable when you lack the time, expertise, or resources to manage your farm directly, or when you want to benefit from professional agricultural management services.

When do you need this document?

You'll need a Farm Management Agreement when inheriting agricultural land but lacking farming experience, when your primary business or career prevents active farm management, or when seeking to optimise agricultural productivity through professional expertise. This agreement is also essential when transitioning from active farming to retirement while retaining property ownership, or when managing multiple agricultural properties across different locations. Investment companies acquiring farmland for portfolio diversification frequently use these agreements to ensure professional operation while maintaining asset ownership.

Key legal considerations

Your agreement must clearly define the scope of management services, including crop planning, livestock management, equipment maintenance, and regulatory compliance. Financial arrangements require careful structuring, covering management fees, profit-sharing arrangements, and responsibility for operational expenses. Termination provisions should address notice periods, asset handover procedures, and dispute resolution mechanisms. The agreement must establish clear reporting requirements, performance metrics, and decision-making authority boundaries. Insurance obligations, environmental compliance responsibilities, and succession planning provisions are crucial elements that protect both parties' interests throughout the management relationship.

Legal requirements in England and Wales

Your Farm Management Agreement must comply with the Agriculture Act 2020, which governs modern agricultural support schemes and environmental land management requirements. The Environmental Protection Act 1990 mandates compliance with pollution control, waste management, and environmental standards that affect day-to-day farm operations. Under the Water Resources Act 1991, you must ensure proper water resource management and abstraction licensing compliance. The Environment Act 2021 introduces additional biodiversity and environmental protection obligations that your management arrangement must address. Agricultural Holdings Act 1986 and Agricultural Tenancies Act 1995 provisions may apply depending on your specific property arrangements and any existing tenancy structures. Your agreement should explicitly address compliance with these legislative frameworks and allocate responsibility for regulatory adherence between owner and manager.