Agents’ cheery outlook post-BPS

Tubbylew

Member
Location
Herefordshire
Tenants are going to have the hardest time from this carry on from what I can see of it, they have stated that they expect rents to drop, like it's some simple thing, but do they really think it is that simple? Landlords aren't gonna shrug their shoulders and think 'ah well we've had a good run' they're going to fight tooth and nail to keep rents as high as they possibly can, falling rents in any sector mean only one thing imo. absolute trauma it's going to be a bitter battle with the land agents rubbing their hands all the way to the bank.
 

4course

Member
Location
north yorks
Tenants are going to have the hardest time from this carry on from what I can see of it, they have stated that they expect rents to drop, like it's some simple thing, but do they really think it is that simple? Landlords aren't gonna shrug their shoulders and think 'ah well we've had a good run' they're going to fight tooth and nail to keep rents as high as they possibly can, falling rents in any sector mean only one thing imo. absolute trauma it's going to be a bitter battle with the land agents rubbing their hands all the way to the bank.
well yes but its other farmers that will be offering the rent that the landlord is basing his desire on and the agent makes a bigger profit handling more acres between less parties, as grandad said a farmers bigger enemy is another farmer
 

Tubbylew

Member
Location
Herefordshire
well yes but its other farmers that will be offering the rent that the landlord is basing his desire on and the agent makes a bigger profit handling more acres between less parties, as grandad said a farmers bigger enemy is another farmer
Yep but this time they won't need the farmer, they'll just take it in hand and rewild it, just to keep suckling on the goverment teat
 

Steevo

Member
Location
Gloucestershire
Tenants are going to have the hardest time from this carry on from what I can see of it, they have stated that they expect rents to drop, like it's some simple thing, but do they really think it is that simple? Landlords aren't gonna shrug their shoulders and think 'ah well we've had a good run' they're going to fight tooth and nail to keep rents as high as they possibly can, falling rents in any sector mean only one thing imo. absolute trauma it's going to be a bitter battle with the land agents rubbing their hands all the way to the bank.

Exactly right. The most successful sectors in any industry have high rents....because the job is profitable enough to pay top whack rents to secure the premises that generate the profits.

Virtuous circle is far far better all round than a vicious one.
 

4course

Member
Location
north yorks
I have yet to broach the subject with my landlords but doubt they would be keen on me devaluing their asset though ive one who is more shall we say in tune with the non productive land management vogue
 

farmerm

Member
Location
Shropshire
Yep but this time they won't need the farmer, they'll just take it in hand and rewild it, just to keep suckling on the goverment teat
I do not see that happening. Aside from a government introduction of asset taxes or removal of IHT reliefs, rewilding is the quickest way to permanently knock 60% of a lands market value! ELS will not provide a suckling teat for many unless many many others cease to claim anything. Our BPS is worth about £25K, if I manage to net £5k/year from ELMS for my time and investment after costs and income foregone have been taken into account ELMS will have exceeded my expectations! After taking account of the next 7 years inflation, £5K/year will not go far!

I believe the biggest winners and looses of the move to ELMS will be determined by who manages to take advantage of the chunk of the pot that will be partitioned to funding grants, in many cases these winners will not be the farmers.
 

ajd132

Member
Arable Farmer
Location
Suffolk
I do not see that happening. Aside from a government introduction of asset taxes or removal of IHT reliefs, rewilding is the quickest way to permanently knock 60% of a lands market value! ELS will not provide a suckling teat for many unless many many others cease to claim anything. Our BPS is worth about £25K, if I manage to net £5k/year from ELMS for my time and investment after costs and income foregone have been taken into account ELMS will have exceeded my expectations! After taking account of the next 7 years inflation, £5K/year will not go far!

I believe the biggest winners and looses of the move to ELMS will be determined by who manages to take advantage of the chunk of the pot that will be partitioned to funding grants, in many cases these winners will not be the farmers.
I think people are getting so focused on the bps/elms debate they are missing genuinely game changing aspects this whole thing should force.
 

farmerm

Member
Location
Shropshire
I think people are getting so focused on the bps/elms debate they are missing genuinely game changing aspects this whole thing should force.
Aside from working out how to mitigate loosing £25K off the bottom line and having to concentrate a bit more effort into hedges and flower margins.... what game changing aspects do you refer to?
 

ajd132

Member
Arable Farmer
Location
Suffolk
Aside from working out how to mitigate loosing £25K off the bottom line and having to concentrate a bit more effort into hedges and flower margins.... what game changing aspects do you refer to?
I will let you work that out. Lots of opportunities in a rapidly changing world.
 
With regards the OP, what ever happens re brexit, Covid and the likes I think that hands on agriculture in the uk will survive but the support and ancillary industries that rely on subs being passed from UK government to them via farm business are going to have a real struggle. That is feed and fert companies, machinery manufacturers/dealers and dare I say it FACTORS/LAND AGENTS
I think if most of us could survive without upgrading kit, buying fert, feed etc we already would?
 

SteveHants

Member
Livestock Farmer
I do not see that happening. Aside from a government introduction of asset taxes or removal of IHT reliefs, rewilding is the quickest way to permanently knock 60% of a lands market value! ELS will not provide a suckling teat for many unless many many others cease to claim anything. Our BPS is worth about £25K, if I manage to net £5k/year from ELMS for my time and investment after costs and income foregone have been taken into account ELMS will have exceeded my expectations! After taking account of the next 7 years inflation, £5K/year will not go far!

I believe the biggest winners and looses of the move to ELMS will be determined by who manages to take advantage of the chunk of the pot that will be partitioned to funding grants, in many cases these winners will not be the farmers.

Depends on if the landowner is savvy enough to "rent" it on a 25 year lease to a company to offset their emissions as per the "Environment Bank" model. The farmer (if he is the landowner) can then manage it. You need to think wider than tree planting, there will be financial value in all kinds of important conservation habitats such as wildflower meadows, water meadows etc etc
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 80 42.1%
  • Up to 25%

    Votes: 67 35.3%
  • 25-50%

    Votes: 30 15.8%
  • 50-75%

    Votes: 3 1.6%
  • 75-100%

    Votes: 3 1.6%
  • 100% I’ve had enough of farming!

    Votes: 7 3.7%

Red Tractor drops launch of green farming scheme amid anger from farmers

  • 1,294
  • 1
As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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