Agricultural Ties

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Agricultural Ties

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tahir

Joined: 28 Oct 2004
Posts: 45668
Location: Essex

Posted: Fri Oct 29, 04 11:26 am Post subject: Agricultural Ties
From my understanding an agricultural tie means that my main income must come from agriculture, although my longer term intention is to make my primary living from it at least in the short term I'd need to supplement it. Is this a possibilty? What are my options?

alison
Downsizer Moderator

Joined: 29 Oct 2004
Posts: 12918
Location: North Devon

Posted: Thu Nov 11, 04 11:18 pm Post subject:
When we were looking at a property with one it seems you must earn 51% of your earning from agriculture all the time. This can be going out to work as well, but must be ag.

tahir

Joined: 28 Oct 2004
Posts: 45668
Location: Essex

Posted: Fri Nov 12, 04 10:03 am Post subject:
Thanks, won't be any good to me then

wellington womble

Joined: 08 Nov 2004
Posts: 15051
Location: East Midlands

Posted: Fri Nov 12, 04 11:27 am Post subject:

I think that's the gist of them, but they do vary. Something like one partners main income must be form local farming (that can include forestry and fishing and stuff too)

I have wondered whether it is possible to be a bit sneaky about this. If my main income was from raising a few pigs etc etc, could I then sell the products to my OH for use in our family. I reckon if I sold him firewood, rented land (for the wind turbine!) and sold him all the produce (naturally at premium organic prices) then this could work. It might work better if we didn't get married (too late for Tahir, I suppose and everything would have to be run as proper business. But otherwise I think this obeys the letter of the law and also (sort of) the spirit. I'd be working the land, we get good produce, the land stays agricultural, we get to live in the country, the local comunity gets all the support we can give them. As long as they were market prices, I think this would be fair. After all, if you take goods for yourself in leui of payment, you have to declare it.

I suppose this would also work if one partner worked to support the other, who was just doing ag work, and even their income were minimal, as long as they didn't make more than 49% elsewhere, it would be within the tie.

One thing I have wondered is who checks? Obviously you can't be getting income from the land until you own it, so there must be some kind of grace period. I heard something somewhere about you must make a profit one year out of the first three. I wonder if this is a tax profit or a real one (it's much easier to make a tax profit.) Does anyone know if this would work?

Claire

alison
Downsizer Moderator

Joined: 29 Oct 2004
Posts: 12918
Location: North Devon

Posted: Fri Nov 12, 04 12:11 pm Post subject:
I don't think market gardening comes under the ag tie Not sure how it would stand with you living on the property either. Good idea though.

Sarah D

Joined: 28 Oct 2004
Posts: 2584

Posted: Fri Nov 12, 04 12:37 pm Post subject:

Restriction or restrictions placed on certain rural property that requires that the land adjoining a residence be actively used for farming or uses associated with farming. This is generally extended to the use of the residence on the land also and can state that it only be used for the benefit of farm workers and their family.

This is the definition I found on the net. It might be worth while going to an Estate Agent that deals with rural properties if you have specific questions or queries - they are generally quite helpful, and again, should have that all important local knowledge.

wellington womble

Joined: 08 Nov 2004
Posts: 15051
Location: East Midlands

Posted: Fri Nov 12, 04 3:13 pm Post subject:
I think they're are all different. When we get an opportunity, we'll run it past our soliciotr. he can earn his money for once!

Lindsay

Joined: 03 Nov 2004
Posts: 61
Location: Stuck in the suburbs

Posted: Sat Nov 13, 04 7:14 pm Post subject:
Some of the ones I've come across are so restrictive that you can't buy the tied house unless you're already earning your living from agriculture

tahir

Joined: 28 Oct 2004
Posts: 45668
Location: Essex

Posted: Sat Nov 13, 04 7:56 pm Post subject:
I've only looked at one yet, and the tie that had meant you had to be earning your money from agriculture already

wellington womble

Joined: 08 Nov 2004
Posts: 15051
Location: East Midlands

Posted: Sat Nov 13, 04 10:26 pm Post subject:

Honestly, what a silly rule!

We once had a mortgage company who stipulated that we must give a provide a rental agreement for the property before they would provide us a buy-to-let mortgage on it. Wehn we rang up and asked how we were supposed to rent out a property we didn't own and mentioned that it was highly illegal anyway, the went away and had a rethink, and said that perhaps in this case it wouldn't be necessary after all!

I will live in a house in the country. I might have be a little devious to get there, but I will.

When I've figured out how, I'll let you all know!

Lindsay

Joined: 03 Nov 2004
Posts: 61
Location: Stuck in the suburbs

Posted: Sat Nov 13, 04 11:48 pm Post subject:
On the other hand, when we've worked it out maybe we'll write a book about how to do it and make sh*tloads of money

tahir

Joined: 28 Oct 2004
Posts: 45668
Location: Essex

Posted: Sun Nov 14, 04 12:05 am Post subject:
I'll wait for you two then

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