The importance of knowing your land holdings

“So, how much land do you have?”

“Well… I reckon it’s around 400 acres.”

“Some of the land I bought myself, some I bought with my brother, my mum and dad own bits, and some is in my wife’s name…”

Like many farming businesses, the land had been accumulated over time, acquired in different names and then farmed together as one unit. Enter, stage left, the farmer’s wife. She calmly produced the most beautifully prepared plan of the farm. Every parcel of land held in different names was clearly identified, colour-coded and labelled. A key in the bottom right-hand corner set out a precise acreage calculation.

I was delighted. My client was staggered. He had never seen it.

While this might sound like a humorous anecdote, it highlights a very important point. When dealing with agricultural land, knowing exactly what you own and how it is held is fundamental. Whether the issue is borrowing, refinancing, land transfers, development opportunities, succession planning or resolving disputes, the first question asked will always be the same: what land is owned, and in whose name? Without a clear and accurate answer, matters can quickly become delayed, complicated and more expensive than necessary.

Lawyers have a habit of asking obvious questions, but in relation to farming units the answers are often far from straightforward. These same frustrations are regularly experienced by banks, land agents, valuers and accountants. Agricultural land is rarely acquired in one transaction. It is commonly built up over decades, sometimes generations, with different family members acquiring land in their own names for tax, succession or practical reasons. Over time, the distinction between legal ownership and day-to-day farming use can become blurred.

This lack of clarity can cause real problems. It may affect the ability to secure lending, delay sales or options, complicate grant applications or undermine a landowner’s position in the event of a dispute. In worst-case scenarios, uncertainty over ownership can lead to family disagreements or litigation that could have been avoided with better records.

Taking the time to collate details of all land holdings, including title information, plans, acreages and ownership structures, is therefore a very worthwhile exercise. Having an up-to-date plan showing how land is held can provide clarity for the whole family and ensure that professional advisers can give accurate and efficient advice when it is needed most.

I can guarantee it will be the first question you are asked.