Farmers and landowners who are approached by onshore wind developers are being urged to seek legal advice from the outset to safeguard their interests.
Emily Pumfrey, partner in HCR Hewitsons’ agriculture and estates team, explains that farmers and landowners are likely to see a surge in interest from developers following the new Chancellor of the Exchequer’s planning shake-up.
Rachel Reeves’ immediate commitment to end the ban on new onshore wind farms and plans to consult on reintegrating onshore wind into the Nationally Significant Infrastructure Project (NSIP) regime in England, have unsurprisingly sparked industry discussions,” said Ms Pumfrey.
She added: “The news that the possible shift to national government led sign-off; rather than local decision-making for large-scale wind projects rightfully raises concerns about balancing future food security against the race to net zero, with more land potentially being taken out of production to accommodate new wind farm sites or other large scale NSIP renewable projects.”
However, change often comes with opportunity and Ms Pumfrey says some landowners could potentially be set to benefit.
“With an influx of enquiries from onshore wind developers expected over the coming months following the Chancellor’s announcement, farmers and landowners looking at alternative ways to secure additional income streams should rightly explore potential opportunities.
“However, we strongly recommend that if a developer contacts you with an initial offer, (especially if they have already obtained or are looking to secure a connection to the nearby electricity grid), you seek legal advice before proceeding.”
Ms Pumfrey said developers will be keen to lock-down potential sites but she warns against signing anything without proper advice.
“Entering an exclusivity arrangement or giving consent for the developer to seek a connection to your land can rule out other potentially better offers,” she said.
“It’s therefore important to undertake proper research, including evaluating a developer’s experience, source of funding and previous success rate.
“A specialist surveyor or land agent can help you with this.”
She added that early consideration of the possible tax and succession implications of such agreements, as well as what it means practically for your farm and business is also vital
“An opportunity for this type of development is often a once in a generation event and will have a long-lasting impact on your rural business for decades to come.
“Overlooking tax implications can lead to costly surprises further down the line, so it’s important to plan for this in advance.”
Ms Pumfrey concluded: “If you are approached and are considering letting your land as an onshore wind farm, our advice is to proceed with caution and seek professional advice from the outset.
“This will help you to avoid any pitfalls and make the most out of the opportunity.”
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