Landowners Take Note
26th Feb 2009
Adam Wood highlights concerns over sharing land.
Agricultural landowners often allow others to farm their land or graze animals upon their land under licence on the basis that they can take back the land, at any time, without having to pay compensation to the farmer.
However, if landowners allow farmers to continue working the land after the term of the licence has expired, they run the risk of the farmer gaining the right to keep the land via a process known as adverse possession.
Acquiring land by adverse possession is the procedure by which a person, who is not the legal owner of the land, can become the legal owner by occupying the land for at least ten years, or, in certain situations, twelve years.
In a case that was heard by the high court in November of last year, a landowner granted a farmer a licence to work his arable farm land for a period of three years. Fifteen years later, despite the fact that the licence had long since expired, the farmer was still working the land and had done so without objection or comment from the owner. The farmer’s view was that he would continue to plough and cultivate the land for as long as he could and, if possible, indefinitely, but if the landowner ever demanded the land back it would have to be given up. The court found that the farmer was able to acquire the land via adverse possession.
Landowners should be cautious about farmers who continue to farm their land once the term of a licence has expired. This case provides a clear message to landowners that, after a licence has ended, something more than just letting the previous situation continue is needed. Landowners would be well advised to protect their property interests by reviewing on a regular basis any licences with farmers and, if required, arrange for a solicitor to record such arrangements by preparing new licences.
Landowners should also be mindful of keeping farm business tenancies granted to farmers, which are more complex than farming licences and grazing licences, under review and, before they come to an end, seek the advice of a solicitor.
Adam Wood is a solicitor in the Commercial Property Team and can be contacted on 01325 466794
Author: Adam Wood, Solicitor (AdamW@bhplaw.co.uk)
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