You know that agricultural land has favourable tax treatment. For Inheritance Tax this can mean complete exemption from tax as business property, and for Capital Gains Tax this can mean the lower rates of tax or Rollover Relief.
You might be letting out surplus land, and this might have increased as you wind down towards a well-earned retirement. Hay fields are commonly let under licences, although this could apply to any crop.
Such agreements have their advantages – practically a risk-free return. However, it would lead to your land losing its business status, and most or all of the tax benefits with it. Worse still, it could affect whether your house qualifies for as a farmhouse, and the loss of tax relief on this could be disastrous.
Alternatively, you could set up a share cropping agreement, where you take a more active part in the process, and share in the profits. The tax benefits will be preserved, and we would be happy to advise you.