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Farm Business
Agricultural Matters
Environmental schemes; Arable Vs. Livestock
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<blockquote data-quote="Grass And Grain" data-source="post: 8274747" data-attributes="member: 23184"><p>I've often presumed ag sub rates might somehow be calculated by land value. So is this some explanation for differing payment rates.</p><p></p><p>E.g. Arable farmer's land is worth £10k/acre, farm is 200 acres, and whole farm in CS will provide payment of £200/acre = £40k</p><p></p><p>Hill side of unimproved pasture worth £2,000/acre. Farmer has 1,000 acres to make same profit (from production agriculture) as the 200acre arable guy. Arable and grassland farms both have equal capital value of £2 million...</p><p></p><p>So to get to same £40k payment rate (if whole farm in stewardship), would be fair if DEFRA paid £40/acre for stewardship.</p><p></p><p>Not saying that's right or wrong, but I can imagine someone coming up with that calculation, and could he argued a reasonable way of doing it.</p><p></p><p>All falls apart if some arable land is worth £7k/acre, and some grassland worth £8k/acre. That said, DEFRA differentiate between improved and unimproved pasture.</p></blockquote><p></p>
[QUOTE="Grass And Grain, post: 8274747, member: 23184"] I've often presumed ag sub rates might somehow be calculated by land value. So is this some explanation for differing payment rates. E.g. Arable farmer's land is worth £10k/acre, farm is 200 acres, and whole farm in CS will provide payment of £200/acre = £40k Hill side of unimproved pasture worth £2,000/acre. Farmer has 1,000 acres to make same profit (from production agriculture) as the 200acre arable guy. Arable and grassland farms both have equal capital value of £2 million... So to get to same £40k payment rate (if whole farm in stewardship), would be fair if DEFRA paid £40/acre for stewardship. Not saying that's right or wrong, but I can imagine someone coming up with that calculation, and could he argued a reasonable way of doing it. All falls apart if some arable land is worth £7k/acre, and some grassland worth £8k/acre. That said, DEFRA differentiate between improved and unimproved pasture. [/QUOTE]
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Environmental schemes; Arable Vs. Livestock
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