Farm Tender Value, 20 yr FBT, Herefordshire

Discussion in 'Tenant Farming, Subsidies, BPS & Legal Issues' started by fodderfarm, May 24, 2017.

  1. fodderfarm

    fodderfarm Member

    Location:
    Herefordshire
    I asked for feedback on our tender, as its a good way to learn. £165 per acre was "Very low to the other tenders". Nothing wrong with only going to what you think the farm can sustain, but that puts all farm tenancies (even those with dilapidated buildings and houses) out of reach of all new entrants. That farm can only gain those prices of £200+ per acre if its being subsidised by another farm or farming family, 220 acres can only feed so many stock. Share Farming is the only way at present, build up your assets, stock machinery etc until you have more clout, but at these prices share farming is far more attractive if you can find the right partner.
     
    little_p likes this.
  2. With respect £165 wasn't low if the winning bid was £172?
    Agents will say anything safe in the knowledge that omly they really know what went on.
     
    multi power and hally like this.
  3. Map2uk

    Map2uk New Member

    We also asked for feedback and very told the same as fodderfarm. Offered £156 which imo is ample for land without entitlements and level of investment needed. Don't want to be buying work!
     
    fodderfarm likes this.
  4. glasshouse

    glasshouse Member

    Location:
    lothians
    You are all fecking mental offering those rents.
     
  5. fodderfarm

    fodderfarm Member

    Location:
    Herefordshire
    depends on what terms you made the offer, we offered a scaling rent as the farm needed so much work to put right, and whether anyone made provisions for 2022 and the possible decline in Single Farm Payments. Yes I would agree that any offer in these figures as rent starting from day one would be impossible to sustain. But it goes to show that most farms are being used as an extension of a main farm, New Entrants have NO CHANCE to rent a farm and share farming will have to be the way if you can find a partner you trust
     
  6. glasshouse

    glasshouse Member

    Location:
    lothians
    Try finding a fox that doesnt eat chicken!
     
  7. fodderfarm

    fodderfarm Member

    Location:
    Herefordshire
    while you've got potato boys around here paying over £400 acre rent and AD plants paying £250 ac rent for maize any decent land in-between has to fetch top money, but the rent cannot be covered by stock farming alone. smaller tenant farmers will have to find better routes to market than just accepting ring prices, its hard work but cutting out all the middle men has to be done. hence new entrants with knowledge from other sectors can be profitable farmers IF they can find any land or farmers willing to help. Share farming can work well for both parties if they share their knowledge
     
  8. glasshouse

    glasshouse Member

    Location:
    lothians
    After brexit the spud/veg men wont be so keen when their workforce disappears.
    AD is a disaster for tenants
     
    fodderfarm likes this.
  9. glasshouse

    glasshouse Member

    Location:
    lothians
    Brexit will be a godsend for aspiring farmers, you will have a clear field, landlords will be begging you to farm their land.
    But land will be so cheap to buy, you wont be interested.:):):):):)
     
    Romney_Rob and fodderfarm like this.
  10. fodderfarm

    fodderfarm Member

    Location:
    Herefordshire
    I really hope so
     
  11. Map2uk

    Map2uk New Member

    Maybe, What do you call the people who are shortlisted at the higher end?
    Reality is at the moment rents are > £150 to even get a lookin. How many can then sustain that though? Or is it a question of keeping up with the high offers,getting a tenancy and a couple years down the line going to arbitration? I would imagine that is happening.
    On a plus note we have now been shortlisted elsewhere thankfully as our landlord is turning our current farm into houses starting in 2020 .
     
  12. hally

    hally Member

    Location:
    cumbria
    Your right but round here good farm rent begin with a 2 not a 1. Friend enquirer about a good well equipped 250acre farm 7 mile away from us and was told 250 was the figure to work around:eek:
     
  13. static

    static Member

    Location:
    Lincoln-ish.
    If anyone wants to offer me £250/ac for a well equipped farm I could pee off for a few years and leave them to it.
     
    Grassman, silverfox, Nearly and 3 others like this.
  14. caveman

    caveman Member

    Location:
    East Sussex.
    I think of I was a young man/woman/couple with enough capital wherewithall to stand a couple of years of renting that and stocking it at that price...... I would be looking more to be buying a piece of land and working elswhere whilst getting a shed up, farm shop, aiming for a house.
    Build myself a life instead of somebody else's.
    Running before you can walk and going arse over tit comes to mind.
    A well known man who I know, once wrote, that his grandfather said he would rather farm one acre of his own than a thousand acres of somebody else's.
    My sentiments entirely.
     
    Last edited: Jul 31, 2017
  15. glasshouse

    glasshouse Member

    Location:
    lothians
    Spot on caveman
     
  16. Scholsey

    Scholsey Member

    Location:
    HEREFORDSHIRE
    So Martyn what's your plans with the place? When do you take over?
     
  17. little_p

    little_p New Member

    Was at a do recently and got talking to a local land agent about FBT's. He was pretty much saying what your saying that the majority that win FBT tenders are existing farmer landowners and not new entrants or tenant farmer looking to change or increase. The interesting thing was one of the main selection criteria wasn't necessarily the £ per acre that had been tendered, but the amount of working capital that the perspective tenant had. I took that to mean that most landlords would rather take a little less if it meant that they will definitely get paid each month.
     
    Grassman, Formatted and glasshouse like this.
  18. glasshouse

    glasshouse Member

    Location:
    lothians
    You nailed it.
    Since banks have been told to increase the 'capital' they hold, they certainly wont lend to a landless tenant, so it really is game over .
     
    Grassman likes this.
  19. Rubbish, if you have good accounts as a tenant you will be able to borrow , just not as much or as cheap as a landowner.
     
    d williams and multi power like this.
  20. neilo

    neilo Member

    Location:
    Montgomeryshire
    I know that's happening on several units locally, which were let at figures close to £200/ac. Few of those farms look as tidy or 'well farmed' as they did when the old tenants left, as they've not had the money to put in. I was talking to a retired tenant from one of them just last week, who was shocked at the state of that place now.:(
    We were asked to match a top bid a couple of times when we were looking, but we walked away rather than get into a position where we had a farm, but were bankrupt within a couple of years.

    Good luck. (y)
     

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