Farm Business Tenancy (FBT) in Yorkshire: What they mean for landlords and tenants

In the world of farming, situations often arise where the description doesn’t quite match the reality. One common arrangement is the Farm Business Tenancy , which governs how land is used, when the agreement can be terminated, and what happens to the land. However, complications can arise when tenants start diversifying their income streams. There are two main conditions that are required to be satisfied in order to ensure that the agreement is a true FBT. These are: 1.

Whilst at the outset of an agreement the use of an FBT is entirely appropriate, it is important for landlords to make sure that a tenant doesn’t diversify the use of the property to include uses that would fall outside the scope of an FBT, such as equestrian or leisure use. If the landlord allows this to occur, it could result in the agreement becoming a business lease.

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