BPS reduction = rent reduction

Punch

Member
Location
Warwickshire
Have RPA or Government announced the BPS reduction rate over the whole period 2022-2027? I’ve got the 2021 reductions.
I’m really struggling with rent figures for rent review!
My gut says 12% reduction per year!
I think that works a £150/ac rent in 2020 to £54/ac in 2028!
Too much or too little?
 

B'o'B

Member
Arable Farmer
Location
Rutland
Have RPA or Government announced the BPS reduction rate over the whole period 2022-2027? I’ve got the 2021 reductions.
I’m really struggling with rent figures for rent review!
My gut says 12% reduction per year!
I think that works a £150/ac rent in 2020 to £54/ac in 2028!
Too much or too little?
All we know is next years reductions and that it will be nothing in 2028. Nothing else has been announced.
 

Goweresque

Member
Location
North Wilts
I think there's supposed to be some sort of Defra announcement in September setting out a road map for the transition from BPS to ELMS, so if you can wait until then you may have a better idea of how things will pan out.
 

farmerm

Member
Location
Shropshire
1598023984048.png


Whilst if on £40k you might see.....


2020​
40​
2021​
36​
2022​
36​
2023​
36​
2024​
36​
2025​
36​
2026​
36​
2027​
36​
2028​
0​

It is more likely to be something like this...


2020​
40​
2021​
36​
2022​
31​
2023​
26​
2024​
21​
2025​
16​
2026​
11​
2027​
6​
2028​
0​
 

Brisel

Member
Arable Farmer
Location
Midlands
Well good luck with getting your landlords to reduce the rent !!

Can't see that happening.

Once the Agriculture Act 2020 gets Queen's Assent and becomes law then IMO it's time to start service rent review notices. We will have more certainty of the tapering off. Of course landlords won't want to reduce them. That's what negotiations are for.

I intend to propose a sliding scale of rent that reduces by half the reduction in BPS to share the pain. Not that I have any of these, but an AHA rent of below the current BPS rates won't have the same decrease rates.

The devil for many will be capping. A 100 acre FBT as part of a much larger holding will have a much higher cap than as part of a smaller holding and I don't see the landlords giving the bigger units much sympathy when they could let it to a smaller one less affected by the cap. It's only for a few years anyway so perhaps I'm overthinking this.
 

DRC

Member
Put it another way... a 150ha farm will need to do the equivalent of sacking a full time member of staff! To play devils advocate, I don't see why tenants should have their BPS income loss offset by reduced rents, those of us owner occupiers will not be so cushioned :rolleyes:
We are 160 ha, but can’t afford a member of staff. :(
I’ll swap you the rent we pay every 6 months for a paid for owner occupied farm if you like:unsure:
 

bobk

Member
Location
stafford
We are 160 ha, but can’t afford a member of staff. :(
I’ll swap you the rent we pay every 6 months for a paid for owner occupied farm if you like:unsure:
Was thinking about your scenario t'other day , I'd be happy to rent if it's as good a ground as yours .
Remember also , you spend your life paying for a farm then you have to get rid of it without the govt dipping it's fingers in .
 

Brisel

Member
Arable Farmer
Location
Midlands
Was thinking about your scenario t'other day , I'd be happy to rent if it's as good a ground as yours .
Remember also , you spend your life paying for a farm then you have to get rid of it without the govt dipping it's fingers in .

I can think of bigger problems than that :)
 

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

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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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