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Farming Partnership Agreement Template for England and Wales

A Farming Partnership Agreement is a legally binding document governed by the laws of England and Wales that establishes the terms and conditions under which two or more parties agree to operate a farming business together. The agreement covers crucial aspects such as profit sharing, capital contributions, management responsibilities, and decision-making processes, while ensuring compliance with relevant agricultural legislation and regulations. It provides a framework for both operational and strategic matters in running the farming enterprise.

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What is a Farming Partnership Agreement?

The Farming Partnership Agreement is essential for agricultural enterprises in England and Wales where multiple parties wish to formally combine their resources, expertise, and capital to operate a farming business. This document is particularly important given the complex nature of modern farming operations and the need to clearly define roles, responsibilities, and financial arrangements. It ensures compliance with the Partnership Act 1890 and relevant agricultural legislation while addressing specific farming-related matters such as land use, livestock management, and subsidy arrangements. The agreement is crucial for both family-owned farms transitioning between generations and new partnerships between unrelated parties.

What sections should be included in a Farming Partnership Agreement?

1. Parties: Details of all partners entering the farming partnership

2. Background: Context of the partnership formation and existing farming operations

3. Definitions: Key terms used throughout the agreement

4. Partnership Name and Business: Official name and nature of farming business

5. Capital Contributions: Details of initial and ongoing capital contributions by partners

6. Profit and Loss Sharing: Agreement on distribution of profits and losses

7. Management and Decision Making: Partnership governance and decision-making processes

8. Banking and Financial Records: Financial management and record-keeping requirements

9. Partner Duties and Obligations: Rights and responsibilities of each partner

10. Term and Termination: Duration of partnership and termination provisions

What sections are optional to include in a Farming Partnership Agreement?

1. Succession Planning: Provisions for future generational transfer in family farming partnerships

2. Environmental Commitments: Specific environmental obligations and practices when participating in environmental schemes

3. Livestock Management: Specific provisions for livestock operations when partnership involves livestock farming

4. Subsidy Rights: Management of agricultural subsidies and entitlements when receiving government support

What schedules should be included in a Farming Partnership Agreement?

1. Schedule 1: Property Details: List of land, buildings, and fixed assets

2. Schedule 2: Capital Account Details: Initial capital contributions and valuations

3. Schedule 3: Equipment and Machinery: List of partnership equipment and machinery

4. Schedule 4: Livestock Inventory: Details of livestock owned by the partnership

5. Appendix A: Farm Maps: Maps showing land boundaries and usage

6. Appendix B: Existing Contracts: List of ongoing contracts and obligations

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Ƶ

Cost

Free to use

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