BELOWAVERAGE
Member
Forgive me as I'm probably a bite short of a sandwich, but are you saying you can't earn enough farming to buy land ?
Price of Farmland
- Thread starter Pie face
- Start date
disagree completely
land is an investment, those invisering in it could not care less about the 1-2% roi from farming it or subs - it’s all about safe capital, development or sporting potential and tax
no - 1-2% maybe 3 is good - you can’t borrow money at that rate can you ?
Just read in the Financial Times this morning that UK 5 year interest rate swaps have dropped to 0.44% last week, making it highly likely at cut of 0.5% to the B of E base rate is imminent, possibly by the end of this month, that would leave the base rate at 0.25%, making any reduction in farmland prices extremely unlikely.
Just look how susceptible some of these global businesses are to a virus like Covid 19, there's nothing like land and gold as the ultimate stores of value when the chips are down.
Tarw Coch
Member
- Location
- Bottom of Wats Dyke
Mr Pirelli of tyre fame is behind the purchase of several farms around here.
Tarw Coch
Member
- Location
- Bottom of Wats Dyke
I think he also mentioned roll over money so not sure wether it was bought with farm profit/borrowing or development cash
former farmer
Member
- Location
- Worcestershire
Do you think he wanted to retyre to your district?
- Location
- S. Staffs
Quite a bit of land round here that was historically owned by the Coal Board was sold off a few years ago, the major buyers were the Church Commissioners and the Crown Estates, don’t know if any of it was sold to the tenants or even offered to them. Such investors like to keep big chunks together imo.
Tarw Coch
Member
- Location
- Bottom of Wats Dyke
You nearly caught me on that one???
- Location
- Darlington
Depends if he has had a good year?
- Location
- Northumberland
Got to keep the wheels going around.
wellingtonfarmer
Member
- Location
- Herefordshire
Pretty sure some dairy farmers, poultry units or soft fruit farmers would disagree with you.
those dairy farmers that were protesting not long ago ? or those chicken farmers on other threads that say jobs screwed ?
only farmers i know of buying land are doing so because they grew a few houses !
I have friends and relations who have owned their farms for generations and easily buy up local ground if they want to .The dairy ones kept updating the parlours/sheds and upping the cows even during the years when the rest of us got out and now they are on good contracts with large volumes of milk and its a licence to print money. The relations with arable farms went into broilers 25yrs ago and have increased shed numbers over the yrs . They let the arable ground and turned the corn/machinery sheds into business units because traditional farming seemed crazy to carry on with compared to chickens which paid the sheds off in seven yrs from when they started. They live like lords now. Im the poor livestock relation!
- Location
- Near Beeston Castle
Sold 14 acres recently at auction that much to my pleasant surprise made exactly that
- Location
- Mendips Somerset
especially the ones drawing the BPS as a pension , along with the rent , quite a few round here like that , A fall in rent and loss of BPS will force a sale
- Location
- herefordshire
the price of that farm seems to go up every time it gets mentioned i was told £4,250 mil so who knows its still alot of money
so your friend and relations are able to afford to buy land and “live like lords” because of their past investments - well done to them fur the shrewd investment of the past but that’s not the same as buying land with income from the trade of farming
why on earth can farmers not understand this VERY important difference between farming (trade) and land ownership (investment) ? . They are NOT linked