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 timeWhy did it show that? Who invited you to tender? Are you close neighbours to the land?
In other words you weren’t the cheapest.
You could look at it that way.In other words you weren’t the cheapest
A lucky escapeHello
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
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!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.
That always seems ridiculous to me. Just my opinion, unless the landowner is on a very low initial percentage.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.
Maybe a day if you have never done it before. Once you have the stuff set up it’s as simple as changing the cropping/areas for different farms and tailoring the text to the opportunity.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?
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.
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?
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!
Do you see many tiered splits in agreements? More of a general question to anyone.
They don’t need to be as well of as letting it. They are only doing the cfa for tax purposesSometh
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