Farm rent

[freddie fox]

Not sure if this is in the right section ? Have a question to ask if anyone knows the answer. I am farming with my brother on a 550 acre farm milking 250 cows plus followers and 200 acre arable. I live away from the farm and brother lives on the farm, I am thinking about leaving the farm who knows what rent i could ask or if i was to get out completely would he have more rights for the farm with living there. the farm is all owned by the two of us.

 

[midlandslad]

Do you actually own the farm?
Do you have a partnership agreement?

 

[freddie fox]

yes and yes

 

[unlacedgecko]

Not sure if this is in the right section ? Have a question to ask if anyone knows the answer. I am farming with my brother on a 550 acre farm milking 250 cows plus followers and 200 acre arable. I live away from the farm and brother lives on the farm, I am thinking about leaving the farm who knows what rent i could ask or if i was to get out completely would he have more rights for the farm with living there. the farm is all owned by the two of us.

What rent does the farming business pay currently?

750 acres at £100/acre is £75k. Half that is £32,500. That's probably a reasonable starting point for negotiations.

Unless your house is also part of the "estate" you could also add in half the annual rental value of his house. More info needed on size, condition and location for that though.

 

[freddie fox]

What rent does the farming business pay currently?

750 acres at £100/acre is £75k. Half that is £32,500. That's probably a reasonable starting point for negotiations.

Unless your house is also part of the "estate" you could also add in half the annual rental value of his house. More info needed on size, condition and location for that though.

its 550 acre and owned, my house is my own and there is two other houses on the farm. location is cumbria but don't want to say to much. good land and mostly all can be ploughed

 

[freddie fox]

What rent does the farming business pay currently?

750 acres at £100/acre is £75k. Half that is £32,500. That's probably a reasonable starting point for negotiations.

Unless your house is also part of the "estate" you could also add in half the annual rental value of his house. More info needed on size, condition and location for that though.

100 acre sounds very little

 

[steveR]

100 acre sounds very little

I think you need to speak with an Agent or other adviser ASAP. Reading between the lines here, but there appear to be some complexities in your situation that are nor appropriate for a public forum.

 

[unlacedgecko]

100 acre sounds very little

What would it cost to rent the farm as it is in its current location? Including the houses?

Half that and there you go.

 

[teslacoils]

yes and yes

What does your partnership agreement say on the matter? It looks like you want out, and that should be covered.

 

[TripleSix]

You either get him to buy you out.
Or
You fight for maximum rental income from him possibly bankrupt the farm and fall out.
Or
Be reasonable with him and only take as much as you need rent wise whilst you do whatever you're planning.

Is your brother going to put profits back into the farm?
It's potentially worth more in the long run when time comes to retire/sell up?

What do you get paid currently?
You won't need a lot of money to live if the house is owned...

 

[Derrick Hughes]

If you rent it too him he will become a sitting tenant which he may or may not be already , so will reduce the value a lot, that being the sale value

 

[beefandsleep]

100 acre sounds very little

No, sounds fair. He’s your bro, give him a ag holding act tenancy.

 

[beefandsleep]

Expect you want buying out of stock etc?

 

[midlandslad]

Also to consider is the tax position. Becoming a landlord loses your potential for entrepreneur relief and reduces your ability to claim rollover relief

 

[michael N123]

Does your brother no your planning on doing this

 

[Suffolk Serf]

What about your share of the “tenant’s capital”?
ie livestock, machinery etc.

 

[spin cycle]

100 acre sounds very little

walking away with £27.5k a year doesn't sound to shabby to me......if the roles were reversed what would you be happy paying?

 

[yellow belly]

if it is possible to separate the farm into two halves
you then rent your half to him on an fbt the term set to his retirement age and a rentle formular based on the price of milk and wheat

remember when you have sorted this out you want to be on speaking terms with your brother
he needs to have a viable business and you need a fair rent

 

[michael N123]

There’s been plenty of farm sales over stuff like this

I can’t see the brother being happy paying you possible more than what he’s taking out for his own wage straight into your bank For doing no work

 

[freddie fox]

Expect you want buying out of stock etc?

yes