Farm Management Agreement for the United Kingdom

Farm Management Agreement Template for England and Wales

A Farm Management Agreement is a legally binding contract under English and Welsh law that establishes the terms and conditions under which a professional manager or management company will operate and manage a farm on behalf of the owner. The agreement covers aspects such as operational responsibilities, financial management, environmental compliance, reporting requirements, and performance metrics. It is designed to protect both parties' interests while ensuring efficient farm operations and compliance with relevant agricultural regulations.

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What is a Farm Management Agreement?

The Farm Management Agreement is essential when farm owners wish to delegate the operational management of their agricultural property to professional managers while retaining ownership. This contract type is particularly relevant in England and Wales, where it must comply with specific agricultural legislation and environmental regulations. The agreement typically includes detailed provisions for operational management, financial arrangements, reporting structures, and compliance requirements. A Farm Management Agreement is especially important for ensuring clear delineation of responsibilities and establishing performance metrics for professional farm management.

What sections should be included in a Farm Management Agreement?

1. Parties: Identification of the farm owner and the management company/manager

2. Background: Context of the agreement, description of the farm and purpose of the management arrangement

3. Definitions: Key terms used throughout the agreement including relevant legislative references

4. Scope of Services: Detailed description of management services to be provided

5. Term and Termination: Duration of agreement and termination provisions

6. Fees and Payment Terms: Management fees, payment schedule, and expenses

7. Obligations of the Manager: Key responsibilities and duties of the farm manager

8. Obligations of the Owner: Responsibilities and duties of the farm owner

What sections are optional to include in a Farm Management Agreement?

1. Employment Provisions: Terms relating to farm workers and compliance with employment legislation

2. Environmental Compliance: Specific environmental obligations and commitments under relevant environmental laws

3. Subsidy Management: Handling of agricultural subsidies and grants including BPS and ELMS requirements

4. Insurance Provisions: Specific insurance requirements and risk management provisions

What schedules should be included in a Farm Management Agreement?

1. Schedule 1 - Farm Description: Detailed description of the farm, including maps and land registry details

2. Schedule 2 - Management Services: Detailed breakdown of services to be provided

3. Schedule 3 - Fee Structure: Detailed breakdown of fees and payment arrangements

4. Schedule 4 - Performance Metrics: KPIs and performance measurement criteria

5. Schedule 5 - Equipment Inventory: List of farm equipment under management

6. Schedule 6 - Environmental Compliance Requirements: Specific environmental obligations and standards

7. Appendix A - Required Licenses and Permits: List of necessary regulatory approvals and permits

8. Appendix B - Reporting Templates: Standard forms for regular reporting and compliance documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Agriculture Act 2020: Primary legislation governing agriculture in England and Wales, including provisions for farm payments, land management, and food security

Agricultural Holdings Act 1986: Legislation governing agricultural tenancies created before 1995, including succession rights and rent reviews

Agricultural Tenancies Act 1995: Legislation introducing Farm Business Tenancies and governing modern agricultural tenancy arrangements

Environment Act 2021: Framework for environmental protection, including biodiversity, water quality, and air pollution measures affecting farm management

Environmental Protection Act 1990: Controls pollution, waste management, and environmental standards that affect farming operations

Water Resources Act 1991: Regulates water resources, abstraction, and pollution control relevant to agricultural activities

Employment Rights Act 1996: Defines basic employment rights for farm workers and other employees

Animal Welfare Act 2006: Sets standards for animal welfare and care in farming operations

Town and Country Planning Act 1990: Governs land use and development permissions for farm buildings and land use changes

Good Agricultural and Environmental Conditions (GAEC): Standards that farmers must follow to receive farm payments and ensure environmental protection

Contract Law Common Law Principles: Fundamental principles governing contract formation, terms, and enforcement in England and Wales

UK GDPR and Data Protection Act 2018: Regulations governing the handling of personal data in farm management operations

Value Added Tax Act 1994: Tax legislation affecting farming businesses, including VAT registration and reporting requirements

Health and Safety at Work Act 1974: Legislation ensuring safe working conditions for farm workers and visitors

Basic Payment Scheme (BPS) regulations: Rules governing direct payments to farmers, including eligibility criteria and compliance requirements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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