Agriculture Act 1967

Farm Structure

26 Grants for amalgamations and boundary adjustments.

(1) The appropriate Minister may in accordance with a scheme make grants out of money provided by Parliament towards expenditure incurred in connection with the carrying out—

(a) of transactions for securing that agricultural land which is an uncommercial unit, but which together with some other agricultural land could form an intermediate unit or commercial unit, shall be owned and occupied with that other land, and

(b) of transactions for securing that, where an intermediate unit or a commercial unit is not all in the same ownership, any part of it comes to be in the same ownership as the rest of that unit, or in the same ownership as some other part of that unit, but excluding transactions which bring into the same ownership and occupation two or more parts of the unit each of which could by itself form a commercial unit, and

(c) of transfers or exchanges of agricultural land (or estates or interests in agricultural land) for the purpose of giving more satisfactory boundaries to one or more agricultural units;

and for the purposes of paragraph (a) above, such assumptions as the appropriate Minister may consider reasonable may be made as to the improvements and works which will be carried out for the benefit of the unit to be formed.

Transactions within paragraphs (a) and (b) above are in this Part of this Act referred to as " amalgamations ", and transactions within paragraph (c) are in this Part of this Act referred to as " boundary adjustments ".

(2) A scheme under this section may restrict the amalgamations and boundary adjustments to which it applies in any way, and may in particular exclude amalgamations of land which has reverted from being in single ownership or occupation.

(3) The expenditure towards which a grant may be made under this section in connection with an amalgamation or boundary adjustment shall be—

(a) the costs of the amalgamation or boundary adjustment consisting of surveyor's fees and legal costs, stamp duty on any conveyance, lease, tenancy agreement or mortgage or heritable security, any compensation for disturbance, and the cost of obtaining any requisite consent of the Ministry of Finance for Northern Ireland;

(b) in the case of an amalgamation—

(i) the cost of such work of prescribed kinds as in the opinion of the appropriate Minister becomes necessary or expedient as a direct consequence of throwing together the units of land which, prior to the amalgamation, were in separate ownership or occupation, and separating them from land which is not to form part of the resulting unit,

(ii) the cost of such improvements of prescribed kinds as in the opinion of the appropriate Minister are for the benefit of the resulting unit as a whole ;

(c) in the case of a boundary adjustment, the cost of such work of prescribed kinds as in the opinion of the appropriate Minister becomes necessary or expedient as a direct consequence of the alterations of boundaries.

In this subsection " compensation for disturbance " means compensation for disturbance under—

(a) section 34 of the [1948 c. 63.] Agricultural Holdings Act 1948,

(b) section 35 of the [1949 c. 75.] Agricultural Holdings (Scotland) Act 1949, or

(c) section 3 of the [1870 c. 46.] Landlord and Tenant (Ireland) Act 1870.

(4) A scheme under this section may make different provision for amalgamations resulting in an intermediate unit and those resulting in a commercial unit; and in particular may restrict grant under subsection (3)(b)(ii) above where the amalgamation results in an intermediate unit to grant in respect of improvements which in the opinion of the appropriate Minister would continue to be of benefit to the land if the intermediate unit subsequently becomes a part of a commercial unit.

(5) The amount of any grant payable under this section towards expenditure shall be one-half of that expenditure so far as approved by the appropriate Minister.

(6) A scheme under this section shall provide for grant in respect of any expenditure being payable by reference to proposals which have been submitted to and approved by the appropriate Minister, and the approval—

(a) may be given before or, in such classes of cases as the appropriate Minister may direct, after the carrying out of the proposals,

(b) may be made subject to such conditions as the appropriate Minister may specify, and in particular subject to any condition as to the time within which the proposals are to be carried out,

(c) may be varied or withdrawn by the appropriate Minister with the applicant's written consent.

(7) After the payment of any grant under this section or subsection (1)(a) of the next following section in connection with an amalgamation the relevant unit shall be subject to the provisions of Schedule 3 to this Act and—

(a) the appropriate Minister shall not approve the proposals for the amalgamation unless satisfied that all persons having an estate or interest in the relevant unit have given their written consent to the application of that Schedule to the relevant unit,

(b) the relevant unit shall be, or be the part of, the agricultural unit or units specified for the purposes of this subsection by the appropriate Minister in the document giving his approval to the proposals, and

(c) in the said Schedule 3 as applied by this subsection " relevant Exchequer payments " shall mean—

(i) the grant in respect of such expenditure as is specified for the purposes of this subsection in that document as being expenditure related to the relevant unit, and

(ii) such sum as the appropriate Minister may certify as the sum representing his administrative expenses (including an appropriate proportion of overhead expenses and other fixed or general expenses) incurred in connection with making the grant,

and " the relevant date " shall, for any grant and the related administrative expenses, be the date when the grant was paid.

(8) In the case of the payment of any grant under this section in connection with a boundary adjustment the appropriate Minister may, if he thinks fit, designate in the document giving his approval to the proposals any land appearing to him to benefit from the boundary adjustment as land which, after the payment of that grant, is to be a relevant unit subject to the provisions of Schedule 3 to this Act, and paragraphs (a) and (c) of the last foregoing subsection shall apply in relation to the boundary adjustment as they apply in relation to an amalgamation.

(9) The duration of a scheme under this section shall be a period not exceeding seven years, but that period may from time to time be extended by further schemes under this section for periods not exceeding seven years.

(10) A grant shall not be made under section 16 of the [1957 c. 57.] Agriculture Act 1957 (which relates to grants towards costs of amalgamation and is superseded by this section) in respect of a transaction proposed in an application made under that section after the coming into force of the first scheme made under this section, and so much of subsection (2) of the said section 16 as limits the time within which applications may be made under that section shall cease to have effect.

(11) The following enactments—

(a) section 6(c) of the [1946 c. 73.] Hill Farming Act 1946,

(b) section 5(3) of the [1959 c. 12.] Agriculture (Small Farmers) Act 1959, or

(c) section 2(3) of the [1964 c. 28.] Agriculture and Horticulture Act 1964,

(under which grant under those Acts may be recovered by the appropriate Minister if there is a failure to carry out proposals), and any provision to the like effect in regulations made under section 77(3) of the [1948 c. 45.] Agriculture (Scotland) Act 1948 or section 22(4) of the [1955 c. 21.] Crofters (Scotland) Act 1955, shall not apply where in the opinion of the appropriate Minister the carrying out of the proposals is, in consequence of the carrying out of proposals approved under this section, impracticable or to no purpose or unduly expensive.

27 Grants for individuals relinquishing occupation of uncommercial units.

(1) The appropriate Minister may in accordance with a scheme make a grant by way of a lump sum payment or an annuity to or for the benefit of an individual who in prescribed circumstances relinquishes his occupation of an uncommercial unit of agricultural land—

(a) where the relinquishment of all or any part of that uncommercial unit is effected as part of an amalgamation to which a scheme under section 26 of this Act for the time being applies, or

(b) in accordance with arrangements which the appropriate Minister or, subject to the provisions of Part III of this Act, a Rural Development Board makes with him (whether or not his landlord or any other person is a third party) to enable the appropriate Minister or the Board to dispose of the unit so that it is owned or occupied with other land, or so as to improve the shape of any agricultural units, or

(c) subject to the provisions of Part III of this Act, in accordance with arrangements approved by a Rural Development Board as being for the purpose of facilitating the afforestation of land in the area of the Board.

(2) A scheme under this section—

(a) may, subject to any prescribed exceptions, require the individual to have been in occupation of the whole of the uncommercial unit for a prescribed period,

(b) may exclude an individual who occupied the uncommercial unit under a short-term letting as defined in the scheme,

(c) may apply to the individual a test by reference to the income (calculated in a prescribed way) derived from the land the occupation of which he relinquishes including, if the scheme so provides, income so derived by the individual's wife or husband or partner or by any other person jointly occupying the land.

(3) A scheme under this section may authorise the making of grant subject to such conditions as the appropriate Minister may specify.

(4) Grants shall not be payable under this section to any one individual in respect of more than one uncommercial unit, and a scheme under this section shall contain provisions for securing that the amount of the grant payable in respect of an uncommercial unit occupied by more than one individual is an amount which is not more than approximately equivalent to the amount which would be payable if it had been occupied by a single individual.

(5) A scheme under this section may provide that, after the death of a person in receipt of a grant by way of annuity, grant under this section of an amount specified in the scheme may be payable to a surviving widow or widower.

(6) The duration of a scheme under this section shall be a period not exceeding seven years, but that period may be extended from time to time by subsequent schemes under this section for periods not exceeding seven years.

(7) Any grant under this section shall be paid out of money provided by Parliament.

28 Loans to assist amalgamations and boundary adjustments.

(1) The appropriate Minister may with the approval of the Treasury make or guarantee loans to meet expenditure incurred in connection with the carrying out, in accordance with proposals approved by the appropriate Minister, of any amalgamation or boundary adjustment to which a scheme under section 26 of this Act for the time being applies, being—

(a) expenditure within subsection (3) of that section, or

(b) any part of the purchase price of any land acquired as part of the amalgamation or as the case may be any part of the purchase price of land acquired, or of money given by way of equality of exchange, as part of the boundary adjustment,

or expenditure under both paragraphs (a) and (b) above.

(2) A loan made by the appropriate Minister—

(a) may be effected through the agency of such body or bodies as the appropriate Minister may select,

(b) must have been approved by the appropriate Minister on an application made in the manner directed by him and within the period of duration of schemes under section 26 of this Act, or within such longer period as the appropriate Minister may determine.

(3) A loan guaranteed by the appropriate Minister shall be a loan made by such body or bodies as the appropriate Minister may select.

(4) A loan made or guaranteed by the appropriate Minister must be one repayable as to both capital and interest within a period of sixty years from the making of the loan.

(5) The appropriate Minister may in making a loan or guarantee under this section impose such conditions as he thinks fit.

(6) After the giving of a loan or guarantee under this section in connection with an amalgamation the relevant unit shall be subject to the provisions of Schedule 3 to this Act and—

(a) the appropriate Minister shall not approve the proposals for the amalgamation unless satisfied that all persons having an estate or interest in the relevant unit have given their written consent to the application of that Schedule to the relevant unit,

(b) the relevant unit shall be, or be the part of, the agricultural unit or units specified for the purposes of this subsection by the appropriate Minister in the document giving his approval to the proposals, and

(c) in the said Schedule 3 as applied by this subsection " relevant Exchequer payments " shall mean—

(i) in the case of a loan, the amount of the loan and interest outstanding and, so far as the lender has been required to accept repayment at a time earlier than that agreed in making the loan, the cost, or so much thereof as the appropriate Minister may determine, of reinvestment and, if the rate of interest on the loan is higher than can reasonably be expected to be obtained on reinvestment (regard being had to the current rate of interest) compensation in respect of the loss thereby sustained or such part thereof as the appropriate Minister may determine,

(ii) in the case of a guarantee, any amount paid by the appropriate Minister in fulfilment of the guarantee,

(iii) in either case, such sum as the appropriate Minister may certify as the sum representing his administrative expenses (including an appropriate proportion of overhead expenses and other fixed or general expenses) incurred in connection with making the loan or guarantee and, in the case of a guarantee, in fulfilling the guarantee,

(d) in the said Schedule 3 as applied by this section " relevant date " shall mean—

(i) for any administrative expenses related to a loan within subsection (6)(c)(i) above, the date when the loan is made,

(ii) for sums within subsection (6)(c)(ii) above, and any related administrative expenses, the date when the guarantee is fulfilled.

(7) In the case of a loan or guarantee made under this section in connection with a boundary adjustment the appropriate Minister may, if he thinks fit, designate in the document giving his approval to the proposals any land appearing to him to benefit from the boundary adjustment as land which, after the making of the loan or guarantee, is to be a relevant unit subject to the provisions of Schedule 3 to this Act, and paragraphs (a), (c) and (d) of the last foregoing subsection shall apply in relation to the boundary adjustment as they apply in relation to an amalgamation.

(8) A mortgage, heritable security or charge securing a loan made or guaranteed by the appropriate Minister under this section may, notwithstanding any rule of law or equity to the contrary, contain a provision that the mortgage, heritable security or charge shall not be redeemable except in the manner specified in the mortgage, heritable security or charge.

(9) Any sums required by the appropriate Minister for making a loan under this section or fulfilling a guarantee made under this section shall be paid out of money provided by Parliament.

(10) References in this section to the guarantee of a loan include references to the guarantee of part of a loan, including a guarantee restricted to interest payable on a loan.

29 Promotion of amalgamations and boundary adjustments by Minister.

(1) It is hereby declared that the appropriate Minister has power under sections 82 and 90 of the [1947 c. 48.] Agriculture Act 1947 and sections 55 and 61 of the [1948 c. 45.] Agriculture (Scotland) Act 1948 (powers of acquiring land by agreement and managing land) to acquire, hold and dispose of land for the purposes of effecting amalgamations of agricultural land and reshaping agricultural units.

(2) That power shall include in particular power for the said purposes to enter into transactions involving loss, including—

(a) amalgamating holdings of land in a way which renders less valuable, or useless, any buildings or equipment on any of the land,

(b) allowing the occupier of an uncommercial unit to retain occupation of a dwelling-house on the land when the remainder of the unit is acquired by the appropriate Minister for the purposes of amalgamation,

(c) selling land resulting from an amalgamation effected by the appropriate Minister subject to depreciatory conditions imposed for the purpose of ensuring that the land continues to be held in single ownership and single occupation for agricultural purposes.

(3) A deed by which the appropriate Minister conveys land, or an estate or interest in land, may apply Schedule 3 to this Act to any of that land, and to any other land, but only if all the persons who will have an estate or interest in the land to which Schedule 3 is so applied are parties to the deed; and in that Schedule as so applied " relevant Exchequer payments " shall mean such amounts as are specified in the deed for the purposes of this subsection under the heads of—

(a) the incidental costs incurred by the appropriate Minister in acquiring and disposing of the land, estate or interest conveyed by the deed, being costs consisting of surveyor's fees and legal costs, stamp duty on any conveyance, lease, tenancy agreement or mortgage or heritable security, and any compensation for disturbance under section 34 of the [1948 c. 63.] Agricultural Holdings Act 1948 or section 35 of the [1949 c. 75.] Agricultural Holdings (Scotland) Act 1949,

(b) any such loss as is described in subsection (2) of this section incurred by the appropriate Minister in dealing with the land, estate or interest so conveyed, including any reduction in the purchase price obtained by him on the transaction effected by the deed in consequence of the depreciatory conditions contained in the deed,

(c) such sum as the appropriate Minister may certify as the sum representing his administrative expenses (including an appropriate proportion of overhead expenses and other fixed or general expenses) incurred in connection with the transaction to which the deed gives effect,

and " relevant date " means the date on which the transaction to which the deed relates takes effect.

(4) Section 24(1) of the Agricultural Holdings Act 1948 and section 25(1) of the Agricultural Holdings (Scotland) Act 1949 (which restrict the operation of a notice to quit an agricultural holding) shall not apply to a notice to quit given by the appropriate Minister where;—

(a) the appropriate Minister certifies in writing that the notice to quit is given in order to enable him to use or dispose of the land for the purpose of effecting any amalgamation or the reshaping of any agricultural unit, and

(b) the instrument under which the tenancy was granted contains an acknowledgment signed by the tenant that the tenancy is subject to the provisions of this section.

(5) Where an instrument bearing to grant a tenancy contains such an acknowledgment as is mentioned in paragraph (b) of the last foregoing subsection, the grant of the tenancy shall have effect notwithstanding section 16 of the [1955 c. 21.] Crofters (Scotland) Act 1955 (vacant crofts), and during the subsistence of the tenancy the provisions of the Crofters (Scotland) Acts 1955 and 1961 and of the Small Landholders (Scotland) Acts 1886 to 1931 shall not apply to any land subject to the tenancy.