BPS reduction = rent reduction

[bobk]

I can think of bigger problems than that

Should've worked harder .

 

[glasshouse]

Landlords will be presented with a quandry, either reduce the rent or find a new tenant. How the hell rents ever got linked to what monies people were paid I will never know.

There was a big court case in scotland which was a whitewash.
Rent is supposed to be Determined on what an incoming tenant would pay, but at that time, an incoming tenant would not have had sfp.
But the judge ignored that and allowed sfp to be rented.
He also took into account potato rents despite them being contrary to the lease.
An establishment stitch up

 

[ollie989898]

There was a big court case in scotland which was a whitewash.
Rent is supposed to be Determined on what an incoming tenant would pay, but at that time, an incoming tenant would not have had sfp.
But the judge ignored that and allowed sfp to be rented.
He also took into account potato rents despite them being contrary to the lease.
An establishment stitch up

Well, if the payment is gone, land will only be worth what folk believe it is worth and what they can earn from it. Could be a lot left unfarmed in some parts of the country where no one wants it.

 

[glasshouse]

Well, if the payment is gone, land will only be worth what folk believe it is worth and what they can earn from it. Could be a lot left unfarmed in some parts of the country where no one wants it.

Could have the opposite effect
Plenty land getting bps not being farmed currently
Why bother when the cheque comes in anyway?

 

[midlandslad]

Whilst the BPS has a big income on farm profits what is more important is the price of commodities. If the exchange rate returns to nearer pre Brexit levels, the price of commodities will drop more than the loss of BPS.

 

[Brisel]

Well, if the payment is gone, land will only be worth what folk believe it is worth and what they can earn from it. Could be a lot left unfarmed in some parts of the country where no one wants it.

There will still be grants to manage the land, even if that isn't "farming" it the way you think.

 

[midlandslad]

ELMS will provide a replacement income stream to BPS, won’t it? Without it a lot of farms will be under serious financial pressure.

The banks appear to think that it will just get replaced and the landlords agents will be keeping their heads down with rent reviews. There will be some almighty battles lined up as agents will not want to reduce the rents as it is not a good thing to report to your client and most of their management income is based on a % of rents.

 

[glasshouse]

There will still be grants to manage the land, even if that isn't "farming" it the way you think.

I dont share your optimism

 

[GeorgeK]

ELMS will provide a replacement income stream to BPS, won’t it? Without it a lot of farms will be under serious financial pressure.

I don't think it's guaranteed, given the state of public finances. Rishi Sunak has said "Not every job can be saved" and "Tough choices will have to be made." The government has accepted not every industry will survive the crisis intact and the Bank of England's position is that "Unviable businesses should not be supported by the taxpayer," instead those made redundant should be retrained so they can work in other sectors.
Surely struggling schools, hospitals, councils etc will be first in line for severely stretched government resources ahead of wild flower fields

 

[glasshouse]

This is whats coming from Cumming!!

 

[midlandslad]

This is whats coming from Cumming!!

afraid not, there are plenty of farmers willing to take on additional land for no profit.

 

[glasshouse]

afraid not, there are plenty of farmers willing to take on additional land for no profit.

We are not talking “no profit”
We are talking big losses
Remember there is a two trillion black hole to fill.

 

[midlandslad]

We are not talking “no profit”
We are talking big losses
Remember there is a two trillion black hole to fill.

I would hope most farms make more In profits than the BPS money they receive.

 

[glasshouse]

I would hope most farms make more In profits than the BPS money they receive.

Thats a laugh

 

[DRC]

ELMS will provide a replacement income stream to BPS, won’t it? Without it a lot of farms will be under serious financial pressure.

The banks appear to think that it will just get replaced and the landlords agents will be keeping their heads down with rent reviews. There will be some almighty battles lined up as agents will not want to reduce the rents as it is not a good thing to report to your client and most of their management income is based on a % of rents.

Elms won’t replace BPS, as obviously at the moment you can grow a crop or graze your livestock AND get the subsidy .
ELMs will largely mean replacing crops with wild bird mixes or such like , or reduced sticking rates with no fertiliser options.

 

[chipchap]

I would hope most farms make more In profits than the BPS money they receive.

That is untrue.

 

[farmerm]

I would hope most farms make more In profits than the BPS money they receive.

If you look at the numbers I think you will find at least 50% of farms farms don't....

 

[DRC]

If you look at the numbers I think you will find at least 50% of farms farms don't....

If we didn’t , we would be able to pay the rent .

 

[glasshouse]

If we didn’t , we would be able to pay the rent .

Is that correct?

 

[farmerm]

If we didn’t , we would be able to pay the rent .

Rent is a cost that comes out before profit... There are a lot of farms where the accounts often show farm generated profits as a figure that is less than the BPS payment. Recent years have been more favorable but I can find examples in our own accounts, not far back, where profit and BPS payments where very similar values, and we do not have rent to pay!