Hi all. I have recently acquired some farm land in east anglia. Can anybody give me an idea of what monthly/annual rent I should be charging to a local farmer. It would be for crops.
Thank you for your help. I take it the prices you have stated are monthly.Well This year Ive got rent reductions on all land rented irregardless of use - Most now down around 50-60 an acre , however I have one block at £75 an acre because the land lord agreed to a 7year tenancy - Pay more for the security.
Generally rents are static or falling due to loss of subsidy, unless you have a few people willing to fight, or desperate to spread costs on acreage. Their are still some high rents, that said alot of value in renting out to a neighbour on good terms at a fair price. Gives you security of income.
You are at the bottom of a very steep learning curve my friend. Tells us a bit more of this story,Thank you for your help. I take it the prices you have stated are monthly.
No the rents are per anumn.Thank you for your help. I take it the prices you have stated are monthly.
Hi all. I have recently acquired some farm land in east anglia. Can anybody give me an idea of what monthly/annual rent I should be charging to a local farmer. It would be for crops.
No the rents are per anumn.
The most expensive land I rent is a 35 acre block of perfectly flat top quality land at £98 an acre. The landlord wanted 120 but at arbitration the land lord was forced to accept a reduction to 98 from 105.
That's £3430 per year for 35 acres. For 5 years.
At anything more than £100 an acre for the best arable ground is not going to make any money for the farmer.
Obviously if it took carrots or spuds you could get one off bonuses (I have a clause of a one off 240 uplift per acre for spuds) but that's a once every 5 to 7 year event as you can't do those crops constantly due to pest risk.
Please remeber one thing - the value of the land has literally no bearing on the rent value. I rent several. Blocks worth more than a million pounds off landlords who have all had the shock of their lives finding I was the best paying Tennant giving them less than a 0.25% return....
The value in land is in the inheritance tax exemption you get when your gone for your kids.
Oh and be ware... Monthly rental prices just open you up to creating an invalid tenancy and having a Tennant who can challenge the agreement and end up using your land for sweet fa for long long time.
Another thing to consider is Public Liability Insurance. This will protect you in the event of a member of the public getting injured whilst on your land. We can obtain a quotation for you which would be around £200 for the year.Hi all. I have recently acquired some farm land in east anglia. Can anybody give me an idea of what monthly/annual rent I should be charging to a local farmer. It would be for crops.