FBT rent review

[D14]

We are currently under review for FBT rents on the majority of our farm, and despite a good deal of negotiating, are not quite agreed on the new rent. With the new subsidy proposals, it looks as though the next two years will continue as is, with 2021 being decoupled and at reduced levels. We are trying to agree the rent for the next three years, and it looks like in theory year three could well need to be lower, but obviously we cannot do this on a three year cycle on an existing tenancy. This is without the drop in sugar beet price, and any effect Brexit will have going forward. What are people's thoughts? English arable lowland.
It would probably have been better if the review was next year after Brexit, but as they have given notice of a review this year, we have little time left to sort it.

Any subsidy support is only valid with the current government who have said they will support it past 2022. If the government changes then we might not get any support next year let alone in 3 years time. Any rent reviews should be without subsidy then agree a top up rent should when any subsidy is received.

 

[Mixedupfarmer]

Any subsidy support is only valid with the current government who have said they will support it past 2022. If the government changes then we might not get any support next year let alone in 3 years time. Any rent reviews should be without subsidy then agree a top up rent should when any subsidy is received.

This was one of my arguments, but currently they want what it would make on the open market on the day the rent is agreed. This could be vastly higher than it is worth next year, but being on three year review cycles we cannot do anything about it. Of course it could be at an acceptable level of rent if things turn out favourable, who knows, doubt it will look cheap though!

 

[Surgery]

What’s folks thoughts on this , what deals have-are being done and at what money?

 

[yellow belly]

What’s folks thoughts on this , what deals have-are being done and at what money?

no changes and no notices served
with bps 2020 at 2019 rates and grain receipts per acre for 2019 similar to 2018 nochange that does not kast for 3 years is fine
the problem is getting the end of tenency dates matching with the stewardship end
things will get active in a couple of years when we have more facts on the system we will farm under post brexit

proposed changes to the aha and fbt laws that incoporate nelms and stewarship will help
because currently if you do not farm a field because it is in a stewardship option it could break the agricultural use laws

 

[Brisel]

Stewardship is agricultural use. Will it take a test case to confirm that? I wouldn't want to be the one contesting it but there has always been a disconnect between justice and the law. Would it be in the interest of landlords to fight this? Most will view this as another form of sub they can lazily extract a % of as rent rather than have the excuse to end a tenancy and take it all back in hand and have to actively do it themselves. Many landlords are just property owners, not managers.

I don't see a reason to serve notice on rents yet & personally I wouldn't do so for at least 12 months with the aim of negotiating in 2022. Once the Ag Bill has been passed into law then fair enough. I'd want to have a better feel for what the trade is like post 31st December 2020 when our transition agreement with Brussels ends. If I had a tenancy ending soon I'd budget for the tariffs on grain prices of €16/t under TRQs into Europe.

 

[Surgery]

Stewardship is agricultural use. Will it take a test case to confirm that? I wouldn't want to be the one contesting it but there has always been a disconnect between justice and the law. Would it be in the interest of landlords to fight this? Most will view this as another form of sub they can lazily extract a % of as rent rather than have the excuse to end a tenancy and take it all back in hand and have to actively do it themselves. Many landlords are just property owners, not managers.

I don't see a reason to serve notice on rents yet & personally I wouldn't do so for at least 12 months with the aim of negotiating in 2022. Once the Ag Bill has been passed into law then fair enough. I'd want to have a better feel for what the trade is like post 31st December 2020 when our transition agreement with Brussels ends. If I had a tenancy ending soon I'd budget for the tariffs on grain prices of €16/t under TRQs into Europe.

Fair point about the tarrif.

just looking at a possible renewing of an fbt and just wanting to see if any new variables have not been taken into account our end , even taken the loss of ctl into account.

 

[Brisel]

Fair point about the tarrif.

just looking at a possible renewing of an fbt and just wanting to see if any new variables have not been taken into account our end , even taken the loss of ctl into account.

As tenant, you'd need to put this point across about higher growing costs and lower income without BPS and possibly lower commodity prices.