Farm Tender Value, 20 yr FBT, Herefordshire

[hally]

No idea

 

[glasshouse]

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

£60 per acre 25 yrs ago is probably equivalent to £250 today.

 

[hally]

It's a shame what we sell hasn't gone up fourfold.

 

[borderterribles]

I was on rented farms between 1989- 2015, and yes, when I started, the rent would have paid a mortgage, but when you've no track record OR even a pot to p**s in, then nobody would lend you the money to buy a farm in the first place. By the time that I had a goodish track record, then the price of land had rocketed and the rent would nowhere near pay a mortgage, unless you were able to buy as a sitting tenant.

 

[glasshouse]

I was on rented farms between 1989- 2015, and yes, when I started, the rent would have paid a mortgage, but when you've no track record OR even a pot to p**s in, then nobody would lend you the money to buy a farm in the first place. By the time that I had a goodish track record, then the price of land had rocketed and the rent would nowhere near pay a mortgage, unless you were able to buy as a sitting tenant.

That is the tenants eternal ptoblem.
You can borrow 100% of the value of a house or tractor, but land needs 40% down. Its nonsense.

 

[FarmerBruce]

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.

How do you work that out?
Land round here is fetching a minimum of £15k/ac
If you could borrow that kind of money at say 3% that's £450/ac/year interest alone!! Put those interest rates up to 5% which is very possible that becomes £750/ac/year interest !! Soon makes £250 rents look cheap!! Unfortunately!

 

[wasted years]

How do you work that out?
Land round here is fetching a minimum of £15k/ac
If you could borrow that kind of money at say 3% that's £450/ac/year interest alone!! Put those interest rates up to 5% which is very possible that becomes £750/ac/year interest !! Soon makes £250 rents look cheap!! Unfortunately!

You aren't reading my posts very well, I said buy a more marginal farm not one at 15k an acre.

 

[Nearly]

You aren't reading my posts very well, I said buy a more marginal farm not one at 15k an acre.

£15k / acre is a marginal farm in some areas. Better to find a cheaper area altogether.

 

[Scholsey]

https://www.sunderlands.co.uk/farms-land/property/bromyard-4832 with a AD plant

 

[FarmerBruce]

You aren't reading my posts very well, I said buy a more marginal farm not one at 15k an acre.

Unless I up sticks that is the price to pay minimum. Two 300/400 acre blocks round here went for 20k recently if the talk is to be believed.

 

[midlandslad]

Unless I up sticks that is the price to pay minimum. Two 300/400 acre blocks round here went for 20k recently if the talk is to be believed.

Wow, was that for equipped units? Where in Yorks is that?

 

[glasshouse]

F

Unless I up sticks that is the price to pay minimum. Two 300/400 acre blocks round here went for 20k recently if the talk is to be believed.

fffffecking. Mental

 

[fodderfarm]

Well would you believe this!! To say Im pi+#ed is an understatement! How many of us spent many hours preparing a business plan for the Duchy Farm, Lyde, Hereford on the basis that the particulars said NO DAIRY, only to be used as a mixed farm, Well would you bloody know it but its let to a DAIRY FARMER. It clearly said NO DAIRY, so how is it that so many of us wasted our time and resources to put forward tenders based on what THEY asked for, only for them to completely go against what they had stated. Had this farm been able to stay a diary unit then there would of been many more tenders due to the Hereford Council sell off of tenanted farms. There had always been an issue with the farm with slurry, but this was due to a leak underground which has been fixed. Surely a estate like the Duchy cannot send out particulars that are inaccurate and even misleading?? What a complete waste of time

 

[JWL]

I feel for you about Hill Farm and yes the details say "suitable as a mixed/livestock farm only and not for dairy" With all the shortsightedness from the Council selling off most of their farms in the area to the highest bidders it is a real joke around here.
In some ways I'm glad that I haven't got any hope in hell of even considering looking at these farms, years ago I was seriously looking at going down the Council Farm route but even then I hadn't got much of a chance especially when competing against existing farmers and their sons.
Nowadays it looks nigh on impossible for a new entrant to get into farming in their own right unless they have massive sponsorship from their family, this is often just extending a family farm.

 

[Formatted]

Its a shame because it'd actually be quite a nice dairy