Cfa tender

Rob78

Member
Hello

we were recently invited to tender for a block of land near us, although we were unsuccessful it showed that we needed a proper tender document with a professional layout, has anyone come across anything which they have used with success?
Cheers
Rob
 

Rob78

Member
Why did it show that? Who invited you to tender? Are you close neighbours to the land?
We were invited by the agent, we would be within 20 minutes of the land, it showed it because we had no template or structure when writing the proposal although we did our best, it probably could have been done better given more time
 

teslacoils

Member
Arable Farmer
Location
Lincolnshire
I've always used a fairly basic - here's who I am and my gear, this is the planned rotation, this is the rough yield / margin plan, here's the split proposed and the expected shares each with a couple of options.

I'd be wary of spending too much time on what's got a high chance of just setting the rates for someone they have already chosen.
 

Brisel

Member
NFFN Member
Location
Midlands
I would suggest the following ingredients;

  • Budget, showing the net returns to both parties at the top - get their interest (or rejection) early on.
  • More detailed breakdown of gross margins. Highlight the cells containing grain prices and yields so their agent can play around with your figures to standardise the prices for a better like-for-like comparison of the tenders.
  • Text on cultivations, manures, husbandry, rotations, buying, selling, machinery, staff, etc with notes on what you may need extra to get the crops established the first autumn
  • How you deal with BPS and stewardship income and the changes to BPS over then next few years
  • Sensitivity analysis e.g. output +/- 15% and how this impacts the bottom line for both parties if there is a big swing in commodity prices.
 

steveR

Member
Mixed Farmer
I would suggest the following ingredients;

  • Budget, showing the net returns to both parties at the top - get their interest (or rejection) early on.
  • More detailed breakdown of gross margins. Highlight the cells containing grain prices and yields so their agent can play around with your figures to standardise the prices for a better like-for-like comparison of the tenders.
  • Text on cultivations, manures, husbandry, rotations, buying, selling, machinery, staff, etc with notes on what you may need extra to get the crops established the first autumn
  • How you deal with BPS and stewardship income and the changes to BPS over then next few years
  • Sensitivity analysis e.g. output +/- 15% and how this impacts the bottom line for both parties if there is a big swing in commodity prices.

C'mon, give me a clue. How long would it take to pull that together do you reckon? Fair old bit of work I'll hazard?
 

Rob78

Member
I would suggest the following ingredients;

  • Budget, showing the net returns to both parties at the top - get their interest (or rejection) early on.
  • More detailed breakdown of gross margins. Highlight the cells containing grain prices and yields so their agent can play around with your figures to standardise the prices for a better like-for-like comparison of the tenders.
  • Text on cultivations, manures, husbandry, rotations, buying, selling, machinery, staff, etc with notes on what you may need extra to get the crops established the first autumn
  • How you deal with BPS and stewardship income and the changes to BPS over then next few years
  • Sensitivity analysis e.g. output +/- 15% and how this impacts the bottom line for both parties if there is a big swing in commodity prices.
Thank you, that’s given me a good base to structure any future tender, ours included most of it but not in that order, sensitivity analysis is a good idea I hadn’t thought of that!
 
Don't assume wheat values will stay where they are, possibly include a tiered type of payment structure which protects the contractor when prices are low but rewards both parties when prices are good. The landowner might want a bigger slice of the pie when corn prices are very good.
 

Flat 10

Member
Arable Farmer
Location
Fen Edge
Don't assume wheat values will stay where they are, possibly include a tiered type of payment structure which protects the contractor when prices are low but rewards both parties when prices are good. The landowner might want a bigger slice of the pie when corn prices are very good.
That always seems ridiculous to me. Just my opinion, unless the landowner is on a very low initial percentage.
 

Brisel

Member
NFFN Member
Location
Midlands
Don't assume wheat values will stay where they are, possibly include a tiered type of payment structure which protects the contractor when prices are low but rewards both parties when prices are good. The landowner might want a bigger slice of the pie when corn prices are very good.

You need exceptional years for the tiers to trigger, though it depends on where you set them. This became fashionable in 2007 when the sudden near doubling of grain prices on a lower cost base produced some very happy contractors who had been making little for years. Since then the few I have been involved in remained in the lower to middle tiers where they were biased in favour of the contractor or 50:50. As a contractor, we invested some of our 2007 profits back into the farms we got on well with to help us both e.g. drier humidity control burners & gas tanks or land drains and depreciated them over 10 years. That contractor still has those clients last time I checked in!

Do you see many tiered splits in agreements? More of a general question to anyone.

C'mon, give me a clue. How long would it take to pull that together do you reckon? Fair old bit of work I'll hazard?

As above, once you've got a good template with linked cells, it's not long.

Thank you, that’s given me a good base to structure any future tender, ours included most of it but not in that order, sensitivity analysis is a good idea I hadn’t thought of that!

Keep it fairly simple by just linking the main output cell values and applying a multiplier. I only suggested 15% because that took wheat prices down to levels 2 years ago where they can soon be back to.
 

teslacoils

Member
Arable Farmer
Location
Lincolnshire
Someth
Do you see many tiered splits in agreements? More of a general question to anyone.

No. I'd be inclined to keep it simple. Assuming the agent doesn't hate DD ie is after the cat/lexion/vaderstad then I'd start at :

Farmers first charge = 80 percent of reasonable fbt rent for the land.

Contractors first bit to be the same.

50/50 split the rest.

Put in some figures to show over the rotation the farmer will be at least as well off as letting it; replace p&k; don't bale everything; say some guff about carbon / regenerative ag.

Them hope your face fits.
 

Flat 10

Member
Arable Farmer
Location
Fen Edge
Someth


No. I'd be inclined to keep it simple. Assuming the agent doesn't hate DD ie is after the cat/lexion/vaderstad then I'd start at :

Farmers first charge = 80 percent of reasonable fbt rent for the land.

Contractors first bit to be the same.

50/50 split the rest.

Put in some figures to show over the rotation the farmer will be at least as well off as letting it; replace p&k; don't bale everything; say some guff about carbon / regenerative ag.

Them hope your face fits.
They don’t need to be as well of as letting it. They are only doing the cfa for tax purposes
 

teslacoils

Member
Arable Farmer
Location
Lincolnshire
They don’t need to be as well of as letting it. They are only doing the cfa for tax purposes

Indeed. But once its been farmed for a couple of years it can be let on an fbt with no tax issues. Assuming no disasters, the owners will want fbt rent as the bottom end of a five year projection. I'd say if pitching then you want to show ten percent over fbt for the owner as a starter.
 

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Man fined £300 for bonfire-related waste offences

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Written by William Kellett from Agriland

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A man has pleaded guilty at Newtownards Magistrates’ Court to waste offences relating to a bonfire next to the electrical sub-station on the Circular Road in Newtownards, Co. Down.

Gareth Gill (51) of Abbot’s Walk, Newtownards pleaded guilty to two charges under the Waste and Contaminated Land (Northern Ireland) Order 1997, for which he was fined £150 each and ordered to pay a £15 offender’s levy

On June 25, 2018, PSNI officers went to Gill’s yard, where they found a large amount of waste consisting of scrap wood, pallets, carpet and underlay.

Discussion with Northern Ireland Environment Agency (NIEA) officers confirmed the site...
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