3 minute read
Farm labour
PHILIP WHITCOMB
Philip Whitcomb is a partner at Moore Barlow LLP (www.moorebarlow.com) one of the UK’s leading law firms and author of new title A Practical Guide to the Law of Farming Partnerships (lawbriefpublishing.com)
Under the terms of the partnership agreement, the remaining partners had an option to purchase the outgoing partner’s share. But what was its value? The written partnership agreement didn’t cover this adequately. The result was a litigation case ending in the Court of Appeal decision.
How many poorly drafted farming partnerships are there with such phrasing? With so much at stake why are there not more good quality agreements?
The key is to get the right advice. In the past this was traditionally dealt with by the corporate commercial team within a legal practice. Often this is still the case, but there is a recent trend for private client practitioners also to be intrinsically involved, to address succession planning and/or capital taxation mitigation strategies. The accountant and land agent also have skills and expertise to add.
There is also the temptation to put to one side elements that need addressing, but due to circumstances, indecision or lack of communication between partners end up in the “too difficult to think about” category. Points such as :
• 'How will the sweat equity of the younger generation be rewarded? • What happens on the death of a partner? • How will the value of an outgoing partner be valued? • How will non-farming partners be recompensed? • What happens if a partner loses mental capacity? • What would happen in the event of a dispute between partners?
Questions around these issues have led to litigation between partners, and that cannot be in the interests of any farming family. Investing in a good partnership agreement is worthwhile in the long run.
Farm labour Farming brief
UK food and drink will feature in the UK Pavilion at World Expo 2021 in Dubai from 1 October 2021 – 31 March 2022. The ‘Innovating for a Shared Future’ exhibit will focus on business collaborations, recovery from the global pandemic and British innovation, in the UK’s most extensive and prestigious presence at a World Expo since it hosted 1852’s first Great Exhibition in London – nine years after The Farmers Club formed. www.great.gov.uk/expo2020
Trade unions have forced the Danish government to reverse a meat ban in state canteens, which would have seen two vegetarian days and beef or lamb only once a week, The Guardian reports. “Changing diet will probably not reduce Denmark’s emissions greatly,” said Copenhagen University’s Katherine Richardson. “Our agricultural sector supplies a global market, so I do not see them producing less because they sell less in Denmark.”
As many predicted in the horticultural sector, the government has announced… “we are keeping an eye on the situation!” But the fact is that from 1 January 2021 the UK has no access to labour from the EU, and with over 98% of the fruit, veg and flowers being picked in the UK by EU nationals, one could say we have a problem, writes Farmers Club member John Hardman. However, confirmation that the current pilot scheme is to be extended to 30,000 EU and non-EU workers through four operators, is very positive. It is certainly not all doom and gloom for 2021 and beyond. Furthermore, many of the 4 millionplus EU nationals with pre-settled & settled status started in the UK picking fruit and veg, and then moved to the hospitality sector when their countries were given EU membership. They may be a considerable percentage of the unemployed in 2021. The future for farm labour may not be as bleak as many first thought. Growers, however, must not rest on their laurels, and must continue to invest in accommodation, social and working conditions to attract the most efficient workers.
