Diversifying Agricultural Land: Legal and Planning Issues for Alternative Uses in England
Diversification has become an important part of rural estate and farm management providing valuable additional income, whether through glamping, hosting festivals and events, or accommodating renewable energy infrastructure. These opportunities are often promoted as flexible or temporary, but in practice they raise a range of planning, land-use, contractual, and tax issues. A key distinction is whether the farmer or landowner operates the activity themselves or grants a third party the right to do so.
This article examines how English law addresses these uses, with a particular focus on planning control, land-use classification, and the legal consequences of letting land for non-agricultural purposes.
Agricultural Use and the Legal Starting Point
Agricultural land benefits from a specific planning use class and, in many cases, favourable tax treatment. Any diversification proposal must therefore be assessed against that starting point.
From a planning perspective, the question is whether the proposed activity constitutes a material change of use from agriculture. From a property law perspective, the issue is whether granting rights to a third party alters the legal character of the occupation, for example, by creating a tenancy, licence, or other proprietary interest.
Both strands are important. A project may appear acceptable from a planning perspective, but it may still have unintended legal or tax consequences if land is let or licensed improperly.
Operating Diversification Projects Yourself
Where a farmer or landowner runs a diversification project directly, they retain control of the land and remain the primary occupier. This is usually simpler from a legal standpoint, although planning rules still apply.
Using land for glamping, leisure, or events typically constitutes a change of use from agriculture. However, the General Permitted Development Order permits the temporary use of agricultural land for recreational purposes for up to 60 days per calendar year, subject to conditions. This may include pop-up campsites and similar uses, provided that the local authority is notified in advance and the land is restored afterwards.
Structures play a critical role. Lightweight, movable units are more likely to fall within temporary use provisions. Fixed buildings, hardstandings, or permanent service connections usually require full planning permission.
Even where the landowner operates the activity themselves, care is needed to ensure that the use does not become permanent through repeated or continuous occupation, which could trigger enforcement action.
Letting Land for Glamping or Events
Where land is let to a third party, additional legal issues arise. Granting occupation rights, even on a short-term basis, may amount to a lease rather than a licence, depending on the level of control granted and the exclusivity of possession. This distinction is determined by how the arrangement operates in practice, not merely by its labelling.
From a planning perspective, it makes little difference whether the landowner or a third party manages the activity. The focus remains on the use of the land itself. However, from a legal and tax perspective, letting land for non-agricultural use can have more far-reaching consequences.
Letting land for glamping or events may interrupt agricultural use and affect eligibility for Agricultural Property Relief. The length of the arrangement, the degree of exclusivity and the nature of the activity will all be relevant.
Contracts should clearly set out the permitted use, duration, responsibility for planning compliance, reinstatement obligations and liability for enforcement action. Landowners should avoid informal arrangements, as they can quickly become difficult to unwind.
Festivals and Temporary Event Use
Festivals and large events raise similar issues, often on a larger scale.
Short-term events may benefit from permitted development rights, provided they fall within the relevant day limits and do not involve permanent works. However, repeated use or extended event periods may constitute a material change of use, particularly where infrastructure remains in place.
When land is let to an event organiser, careful drafting is essential. Agreements should address noise, traffic management, insurance, environmental compliance, and responsibility for any breaches of planning control or licensing requirements.
From a land law perspective, event arrangements are usually structured as licences rather than leases, but this must be reflected in how the agreement operates in practice, not merely by its labelling.
Renewable Energy Projects and Long-Term Lettings
Renewable energy projects such as solar farms and battery storage typically involve longer-term commitments and more formal legal frameworks.
These developments almost always require planning permission and are generally treated as operational development rather than as temporary use, even where the consent is time-limited.
These developments typically involve option agreements, followed by leases or long-term licences granted to developers. While this can generate secure income, it can also permanently alter the character of the land.
Allowing agricultural land to be used for energy infrastructure removes it from agricultural use for inheritance tax purposes, potentially resulting in the loss of Agricultural Property Relief. The increase in land value associated with development can significantly increase exposure to inheritance tax.
Landowners should also consider how these arrangements interact with existing tenancies, subsidy schemes and farming operations.
Environmental and Local Policy Considerations
Local planning policies play a major role in assessing diversification proposals. Authorities may support farm diversification in principle but impose strict conditions on landscape impacts, access, biodiversity, and drainage.
Environmental compliance is critical where land is used intensively for short periods, such as at festivals or for seasonal accommodation. Waste management, water supply, and the protection of sensitive habitats are frequent sources of difficulty if not addressed at an early stage.
Managing Legal Risk Through Proper Advice
The legal position regarding diversification depends not only on how the land is used but also on who uses it and on how those rights are granted.
Operating projects directly can offer greater control, but it still requires careful planning and compliance. Letting land to third parties introduces additional risks around land law, tax reliefs and long-term control of the holding.
Before committing to any diversification project, landowners should seek specialist advice from their solicitor to ensure that planning requirements are properly addressed, that agreements are correctly structured, and that valuable agricultural tax reliefs are not inadvertently lost.
If you have an Agriculture and Land query please use the details below to contact Partner and Head of Agriculture Tracy Neal, who will be more than happy to assist.
Tracy Neal – Partner and Head of Agriculture