BPS reduction chart

[Bossfarmer]

Good question its a mixed bag when i had tenancy swopped into my name & thats a fair few years ago now poss 20 even.
That incured a small increase.
Then twice since every 3 to 5 years weve had similar ones & nothing for atleast 6 years now,
there is no grounds at all to put it up last few years am sure we would all agree there, job has been so up n down how could you?
If at any point in next 12months they do this we will be fighting for a decrease straight away.
Just as id pretty much say we will probs be serving notice on them at some point next yeat knowing whats coming with the BPS deductions
Hellish this has too go on but Law is Law & for once its on our side, this is very rare mind.

do they take your bps into account at the moment i.e if its gone up in the past have they automatically put the rent up? if so you have am easy argument to bring the rent back down

 

[B'o'B]

do they take your bps into account at the moment i.e if its gone up in the past have they automatically put the rent up? if so you have am easy argument to bring the rent back down

AHA rent is calculated using the earning capacity of the holding as farmed by a competent tenant. Rent reviews can be triggered by LL or tenant no more than once every 3 years.

 

[Bossfarmer]

AHA rent is calculated using the earning capacity of the holding as farmed by a competent tenant. Rent reviews can be triggered by LL or tenant no more than once every 3 years.

Do they include sfp in their calculations though?

 

[Muddyroads]

Well, I would not expect cropping to continue in such circumstances...

Lots of Stewardship/ELMS/ Enviro Schemes and enjoy the land without the grief? Parkeeping some call it. My take is that it will allow land to be kept in great order, build fertility and wait for teh day when we need food again from the UK.

Will land be kept in great condition though? It won’t take too much land to be neglected (rewilded) before all responsible land managers are facing an uphill and expensive battle with ragwort etc.

 

[B'o'B]

Do they include sfp in their calculations though?

Yes.

 

[steveR]

Will land be kept in great condition though? It won’t take too much land to be neglected (rewilded) before all responsible land managers are facing an uphill and expensive battle with ragwort etc.

Mine will be farmed, but just not producing a food crop... for human or domestic livestock. Been doing this for 25 years already, just bigger areas in the future...

and not as well rewarded.

 

[Farma Parma]

Do they include sfp in their calculations though?

YES its all part of the Earn Cap of the holding as any Tenant who was here or on any Other AHA would get the full SUB if they played ball
LL is fully aware of all of this.

 

[Farma Parma]

YES its all part of the Earn Cap of the holding as any Tenant who was here or on any Other AHA would get the full SUB if they played ball
LL is fully aware of all of this.

Think it was mid Nineties when the rent here was £40/ac & we were already a few years into IACS but the money was smaller than were at now of course & there was
compulsory 10 of 15% set a side i know they upped it but cant mind when now. Dad rang the show back then & even he said this is nuts getting paid to leave land with nothing on it.
The Heavy ground was wetter with no crop on it than cropping it.
2 years later in increased 50% why n how dont know, Sheep left we then went 100% arable & been same ever since

 

[Farma Parma]

do they take your bps into account at the moment i.e if its gone up in the past have they automatically put the rent up? if so you have am easy argument to bring the rent back down

no quite but there was more money in the job grain prices were better so they had grounds i guess.
Quite a few on the estate was at all diff levels of Rents so we heard, most are pretty well lined up now.

 

[Billboy1]

Do they include sfp in their calculations though?

Last time the LL we’re struggling to get the rent they wanted they started to include the residential value of the farmhouse as a way of boosting there rent. That caused a big argument here and I backed down in the end .
There willl have to be some serious negotiating in the next few years and I’ll probably employ an agent to act on my behalf which I’ve never done before as a guess the rent will have to reduce by at least 1/2 of bps payment (45a ) ?

 

[4course]

our landlord tried a similar wheeze re the house to be fair half heartdly as was a comment to try and increase the rent for the holding. However we amicably pointed out that when we took the farm the conditions dictated that we had to live in the house maintain its upkeep etc and was part of the tenancy and as such not to be treated any differently than the buildings. A further gentle comment by me was we dont want to spoil the relationship by us having to employ an agent ended the matter( even though I had already paid for advice prior to the initial discussions ,a lesson I learnt years ago) but im sure it will come up again when or if we take a view on the reduction of earning capacity due to loss of payments. The problem facing many tenants is the value of the house on the open rental market could match or exceed the land rent if seperated depending on location etc which wasnt an issue years ago when these tenancies where taken up. Glad I had engaged proper advice both then and at other times . You cant go into battle //discussions unarmed plus it levels the field or indeed tips it the tenants way if you are well informed before positions become entrenched

 

[Warp Land Farmer]

Has the BPS £figure now been set for the remainder of its term?
Are the £payment figure per Ha or A confirmed?
Or is it all still a gamble as to what BPS will be each year till it’s gone?
Thanks.

 

[midlandslad]

Has the BPS £figure now been set for the remainder of its term?
Are the £payment figure per Ha or A confirmed?
Or is it all still a gamble as to what BPS will be each year till it’s gone?
Thanks.

BPS can be calculated quite accurately now up to 2024. Don’t expect ELMS to generate the same “profit”

 

[Warp Land Farmer]

BPS can be calculated quite accurately now up to 2024. Don’t expect ELMS to generate the same “profit”

Thankyou. Where is the information to do this please?

 

[B'o'B]

Thankyou. Where is the information to do this please?

Here you go....

https://bic.ahdb.org.uk/Calculator

 

[Sonoftheheir]

Hell of a reduction if you were getting £1 million pounds worth.

 

[Hilly]

This is BPS capping, which comes into force next year. BPS reduction is 20% per year between 2022 and 2027, with 2028 being £0!

E.g a 150 ha farm would get paid as follows

2020 = £34,200 (£92 per acre/£228 per hectare)

2021 = £31,806 (£86 per acre/£212 per hectare)

2022 = £27,292 (£74 per acre/£182 per hectare)

2023 = £22,709 (£61 per acre/£151 per hectare)

2024 = £18,195 (£49 per acre/£121 per hectare)

2025 = £13,612 (£37 per acre/£91 per hectare)

2026 = £9,097 (£25 per acre/£61 per hectare)

2027 = £4,583 (£12 per acre/£31 per hectare)

2028 = £0

I’m nearly their already ! Good luck catching me up.

 

[Greythundercloudys]

What happens in 2028 when fertiliser and feed will be 350£a ton, are sheep going to be 150 and cattle 2 grand, they'll need to be. Or are hill place going to get 100£a hectare for permanent pasture and wetlands, moss.

 

[delilah]

Or are hill place going to get 100£a hectare for permanent pasture and wetlands, moss.

Yes. If enough people point out to Defra that this is what is required.

 

[Billboy1]

still not heard from our agent , thought they might have contacted me by now offering a reduction