GRAZIERS WILL need to sort out grass-keep arrangements with their landlords before long to ensure there are no unforeseen problems with subsidy payments.
Under CAP reform rules land must be registered for 10 months before entitlements can be claimed.
Either the landlord or tenant could do this, but not both, said Strutt & Parker‘s Paul Dennison.
Both parties had to understand who was registering the land, and, therefore, due to claim the subsidy entitlements, to avoid confusion or disputes, he added.
Tenants who may have had the land for several years should not expect to be able to claim it.
But landlords tempted to take the entitlements and rent the land out as usual would have to accept a lower rent than under a “with-entitlement” contract, said Mr Dennison.