[2024] UKUT 149 (LC)

We can now turn to the second requirement in paragraph 3 of Schedule 5; the three buildings must be solely used in connection with agricultural operations on agricultural land. We can deal with this more shortly.

The appellant argues that the three buildings are used solely in connection with agricultural operations on the Fridays Farms and the independent farms. Those farms do have sheds for the hens to roost and lay eggs in, but those sheds are not comparable to the broiler houses in Farmer v Buxted; these are not battery hens and the sheds are ancillary to the surrounding land where the chickens range. The appellant’s case is that the three buildings at Chequer Tree Farm are solely used in connection with the agricultural operations on the land, not the buildings, at Fridays Farm (if the connection argued was with the buildings then the appellant would have to use paragraph 5 of the Schedule 5, but that is not its argument). And the essential function of weighing, grading and packaging is something that has to be done with the eggs laid on the Fridays Farms; otherwise the farming operation fails because the eggs cannot otherwise be sold (because of the regulatory framework for the egg market).

The respondent argues that the three buildings are not ancillary or subsidiary to the land at Fridays Farms; their use is a “primary use” of land for packing and distribution purposes, and goes well beyond operations that can reasonably be said to be consequential to the agricultural operation of producing the eggs. Similarly, the three buildings are an independent packing hub for the independent farms.

We think that the respondent’s argument lays too much weight on the packing of the eggs, and overlooks the weighing and grading. Regulations and industry practice make it impossible to sell the eggs without this operation; and the packing of the eggs goes hand-in-hand with their grading, because the grade A eggs go into supermarket boxes for retail while the grade B eggs take a different journey in keyes trays, as we saw. The necessity for these processes to be done before the eggs can be sold gives the three buildings a close functional connection with the agricultural operation of producing eggs on the land at Fridays Farms, and therefore we take the view that the second requirement is met.