Farm Tender Value, 20 yr FBT, Herefordshire

[wasted years]

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

Every 4 years a tenant farmed there he/she could have paid 1k an acre off, if you can finance taking land at £250 an acre I would suggest buying a more marginal farm would be a far better idea.
Every pound paid in rent is a pound lost but every pound paid on a mortgage leaves approx 97pence behind in increased asset value.

 

[chipchap]

Every 4 years a tenant farmed there he/she could have paid 1k an acre off, if you can finance taking land at £250 an acre I would suggest buying a more marginal farm would be a far better idea.
Every pound paid in rent is a pound lost but every pound paid on a mortgage leaves approx 97pence behind in increased asset value.

Yes but if the interest rate went up to 10% where would you be.
And what about 15 or even 20%?
Renting will leave you a way out with still a shirt on your back.
If things go wrong and you've got a lot borrowed you loose everything, even perhaps your spouse.

 

[glasshouse]

S

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.

so how does a new entrant get good accounts?

 

[wasted years]

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 .

You were talking about an existing tenant not a new one.
My point is that if a new tenant can fund a rented farm at £250/acre then they are able to fund buying a perhaps lesser quality farm.

 

[BELOWAVERAGE]

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.

Would they be dairy or stock farms? would they be drawing the sub?

 

[BELOWAVERAGE]

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.

I was just wondering why they'd ask you to match a top bid rather than just give the tenancy to the person who made that bid(as you were an unproven tenant), but I suppose it boils down to the fact you are a lot wealthier than most aspiring tenants, and could buy your own farm if paid out of the family partnership.

 

[glasshouse]

You were talking about an existing tenant not a new one.
My point is that if a new tenant can fund a rented farm at £250/acre then they are able to fund buying a perhaps lesser quality farm.

Yes.
£250 rent is suicide , unless you own an AD plant locally

 

[neilo]

Would they be dairy or stock farms? would they be drawing the sub?

They would be stock farms. I expect they are probably claiming sub, but only because of the entitlements they would have already owned, or have purchased since. The landlord rarely has anything to do with entitlements now.

 

[neilo]

I was just wondering why they'd ask you to match a top bid rather than just give the tenancy to the person who made that bid(as you were an unproven tenant), but I suppose it boils down to the fact you are a lot wealthier than most aspiring tenants, and could buy your own farm if paid out of the family partnership.

I'm certainly not that wealthy, or I wouldn't be renting, especially on an FBT.

I'd like to think it's because they considered us the best applicants, and those that might look after their capital asset as if it were our own. Ultimately, most estates are in trust, and it's the trustees' legal duty to best look after the financial interests of that estate. Every prospective tenant tells a good story, so the arguement to award it to a lower tender for 'the good of the farm', is a hard sell.

 

[multi power]

Yes.
£250 rent is suicide , unless you own an AD plant locally

Or a dairy farm next door

 

[hally]

Yes.
£250 rent is suicide , unless you own an AD plant locally

Funny you should mention that, rumour is the local billionaire has taken it for his AD plant

 

[glasshouse]

You were talking about an existing tenant not a new one.
My point is that if a new tenant can fund a rented farm at £250/acre then they are able to fund buying a perhaps lesser quality farm.

Totally right
I just wish i had done that 25yrs ago instead of renting

 

[hally]

Totally right
I just wish i had done that 25yrs ago instead of renting

Me too

 

[glasshouse]

Me too

Now i think about it , i rented a lesser quality farm and turned it into a better quality farm.

 

[hally]

When I started I had to borrow my neighbours cattle trailer every time I wanted to sell some sheep as I could not afford one, so I would have liked to see the bank managers face if I wanted to buy a farm back then.

 

[wasted years]

When I started I had to borrow my neighbours cattle trailer every time I wanted to sell some sheep as I could not afford one, so I would have liked to see the bank managers face if I wanted to buy a farm back then.

Yes but were you paying £250 an acre to rent?

 

[hally]

No and still not

 

[wasted years]

Which farm is it that is to rent.?
I don't get the local papers.

 

[hally]

Topping castle

 

[wasted years]

Ah, ok, Alan won't be retiring age surely?
Good farming land in there , won't be much better, don't know about the buildings, we bought a forager off them years ago.
It's a while since they milked there isn't it?