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Farm Business
Tenant Farming, Subsidies, BPS & Legal Issues
BPS reduction chart
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<blockquote data-quote="midlandslad" data-source="post: 7818487" data-attributes="member: 5349"><p>There is so much volatility at the moment, it is difficult knowing which way the rental market will go. Whilst output prices have probably increased by over 20% in recent months, so have the inputs. The great casino of farming is becoming ever more expensive to stay at the table.</p><p></p><p>The real uncertainty is whether we are in a short term honeymoon period now, or whether this is the new normal. I can't help but look at some of the price graphs and think what goes up must come down, both in terms of inputs and outputs.</p><p></p><p>Has the margin in farming remained relatively static and the cost of getting there got even more expensive, in which case there probably isn't a case for a rent increase on AHA land.</p><p></p><p>I have no doubt that FBT rents will get stronger and stronger as people chase the acres to achieve those economies of scale.</p></blockquote><p></p>
[QUOTE="midlandslad, post: 7818487, member: 5349"] There is so much volatility at the moment, it is difficult knowing which way the rental market will go. Whilst output prices have probably increased by over 20% in recent months, so have the inputs. The great casino of farming is becoming ever more expensive to stay at the table. The real uncertainty is whether we are in a short term honeymoon period now, or whether this is the new normal. I can't help but look at some of the price graphs and think what goes up must come down, both in terms of inputs and outputs. Has the margin in farming remained relatively static and the cost of getting there got even more expensive, in which case there probably isn't a case for a rent increase on AHA land. I have no doubt that FBT rents will get stronger and stronger as people chase the acres to achieve those economies of scale. [/QUOTE]
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BPS reduction chart
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