A grazing permit can be used if the owner of the horse does not have exclusive use of the country. A license may be granted to a private owner or a commercial user. Our Grazing licence provides for an included licence fee and includes standard agreements that govern the licensee`s use of the land. If the land is to be used exclusively by a private horse owner, a grazing lease should be used. This is a «common law» rental right and as such, the tenant will not benefit from the security of the rent available to farm, professional or residential tenants. Our Grazing Lease for Private, Non-Commercial Use is a simple, easy-to-use document that contains agreements similar to those of the Grazing License. Most of our competitors sell grazing contracts that are either short-term common law leases or agricultural leases that limit the tenant to using the land to feed livestock. «Once the grazing animal has been identified, the choice of the right contract depends on whether the landowner wishes to grant the grazing animal short-term non-binding access to the land through the granting of a licence or to impose more formal obligations such as repair or maintenance, in which case a formal lease would be more appropriate. This agreement is different in that it is a contract to take what drives the countryside and not an occupancy license.
Since he does not grant the licensee any right of occupancy, the landowner grants far fewer rights than he would under a grazing lease. The legal context of grazing contracts is, in our view, very interesting and deserves a brief comment. «For example, farm real estate can benefit from significant tax benefits, but only if strict guidelines have been followed. Farmers may inadvertently lose these tax benefits if there is no formal grazing licence or if the agreement has been mis formulated and is subsequently considered violated. (2) If the land is used in commercial or commercial activity, a grazing agreement can create an FBT as long as the character of the lease remains essentially or entirely agricultural. If this is the case, the landowner`s ability to recover the property depends on the length of the contract. If it is a fixed term of two years or less, it automatically ends at the end of the agreed period or with the operation of a break clause. At least one year`s notice is required if the validity period is longer than two years or from year to year. «Before accepting pastures, it is important for the owner to understand the difference between grazing horses and livestock.» It makes sense to have a formal agreement that is well developed when someone else is allowed to use or have access to a part of your country. This legal area is complex and it is important to ensure that you retain the full rights and benefits of your country. Nevertheless, there are advantages, namely that an operation does not confer renewal rights, operating security or inheritance tax.
In the case of a tenancy period of two years or less, the contract simply expires after the term has expired, without notice. However, it gives the tenant exclusive ownership of the land, so you would not be able to benefit from BPS or various tax benefits (including APR). It should also be noted that tenants who improve the land are entitled to compensation from the owner under an agricultural lease. The loopholes in the law have been filled over the years, to the point that any contract that allows a landowner to obtain payment in return for someone else`s occupation of the land is interpreted as a lease agreement, even if the written contract is disguised as a licensing agreement. If it can be proven that it is a genuine licence, it can also be attractive to the landowner by allowing him to continue to claim a one-time payment or new land payments in the countryside.