Grasskeep & inflation?

[exmoorsheepfarmer]

Hello there!
I am just reading through a new grasskeep agreement for a piece of ground we've had for several years.
The landowner has gone away from the land agents and is doing the agreement himself.
He's used a basic agreement but has added the price will increase by the cpi inflation for the year, I understand this might happen every year.
I have never come across this before, my livestock isn't worth more every year to inflation,nor the price I get when I sell.
I haven't agreed to it yet and it is still in discussion, but does anyone know the relevance towards grass keep and inflation?

 

[Rossymons]

Sounds like a call to the TFA would be very good value

 

[Devil's advocate]

Hello there!
I am just reading through a new grasskeep agreement for a piece of ground we've had for several years.
The landowner has gone away from the land agents and is doing the agreement himself.
He's used a basic agreement but has added the price will increase by the cpi inflation for the year, I understand this might happen every year.
I have never come across this before, my livestock isn't worth more every year to inflation,nor the price I get when I sell.
I haven't agreed to it yet and it is still in discussion, but does anyone know the relevance towards grass keep and inflation?

If you want it pay.

If you don't want to pay, leave it, someone else will take it.

 

[kfpben]

Hello there!
I am just reading through a new grasskeep agreement for a piece of ground we've had for several years.
The landowner has gone away from the land agents and is doing the agreement himself.
He's used a basic agreement but has added the price will increase by the cpi inflation for the year, I understand this might happen every year.
I have never come across this before, my livestock isn't worth more every year to inflation,nor the price I get when I sell.
I haven't agreed to it yet and it is still in discussion, but does anyone know the relevance towards grass keep and inflation?

Why don’t you suggest it’s linked to the lamb/beef price on a certain date each year? A bit more relevant than the cpi.

 

[Devil's advocate]

Why don’t you suggest it’s linked to the lamb/beef price on a certain date each year? A bit more relevant than the cpi.

That would cost the OP a fortune this year.

 

[Frank-the-Wool]

Hello there!
I am just reading through a new grasskeep agreement for a piece of ground we've had for several years.
The landowner has gone away from the land agents and is doing the agreement himself.
He's used a basic agreement but has added the price will increase by the cpi inflation for the year, I understand this might happen every year.
I have never come across this before, my livestock isn't worth more every year to inflation,nor the price I get when I sell.
I haven't agreed to it yet and it is still in discussion, but does anyone know the relevance towards grass keep and inflation?

If this is just a grazing licence then it isn't relevant as that is only a 364 day agreement and the LL is only selling the crop.
The price agreed is for one year any mention of changes to price infers that this is a tenancy.
If it is a home made FBT then I wouldn't agree to it on those terms.

 

[Exfarmer]

I would suggest looking very closely at ther agreement, sounds like he is giving a tenancy and depending on pricing may well be worth taking . Tenancies with only upward pricing linked to CPI are very common in industry ands there was a move to them in the 1980’s when the big insurance companies were going into land in a big way

 

[ISCO]

I would suggest looking very closely at ther agreement, sounds like he is giving a tenancy and depending on pricing may well be worth taking . Tenancies with only upward pricing linked to CPI are very common in industry ands there was a move to them in the 1980’s when the big insurance companies were going into land in a big way

Yes, very common in a commercial lease to have upward only review to RPI or CPI.
No relevance to the price of livestock and not usually seen in a grazing agreement.

 

[Agri Spec Solicitor]

I don’t understand the question in the context of an agreement which runs less than a year. The rent is established on signing.

 

[Poorbuthappy]

Ime inflation has little influence on grass keep. Demand is the key.
If you're competing with dairy farmers/ digesters prices can be £2-300, and have been so for the last 15 years +

Smaller/ less desirable bits have been more like £50-100, with better stuff somewhere between the 2. But again, this has not changed much in last 15-20 years.

Landlords had a big spike in income when bps came in, as headage payments claimed by the grazier disappeared, and the land owner claimed the new sub, with little change to grass keep rents

What will happen now with SFI is less clear.

 

[Derrick Hughes]

Sounds like a call to the TFA would be very good value

If its a grass let let he cam charge what he wants , he's not said his area but good grass average around here would be £150 acre

 

[kfpben]

That would cost the OP a fortune this year.

As long as the agreement states the rent can go down as well as up it could be fair?

 

[Pottersfarm]

Hello there!
I am just reading through a new grasskeep agreement for a piece of ground we've had for several years.
The landowner has gone away from the land agents and is doing the agreement himself.
He's used a basic agreement but has added the price will increase by the cpi inflation for the year, I understand this might happen every year.
I have never come across this before, my livestock isn't worth more every year to inflation,nor the price I get when I sell.
I haven't agreed to it yet and it is still in discussion, but does anyone know the relevance towards grass keep and inflation?

Just let some bits for £180/ac. We keep SFP and we get the SFI if I decide to put it in. They do all reseeding, fert and spraying and take hay/hayledge and graze it for that. We provide the water. They put an electric fence up when grazing. It’s not a big area but all small bits totalling 20 acres.

 

[Yale]

Just let some bits for £180/ac. We keep SFP and we get the SFI if I decide to put it in. They do all reseeding, fert and spraying and take hay/hayledge and graze it for that. We provide the water. They put an electric fence up when grazing. It’s not a big area but all small bits totalling 20 acres.

You’ve done very well, I’d consider stuff we had at half the price on similar terms as way too expensive.

 

[toquark]

Funny, I’ve just had similar which raised my eyebrow. I considered the following:

1) Trade is flying
2) Neighbour would have my eyes out for it
3) It was very cheap to start with

So I wrote the cheque and thought little of it.

 

[beardface]

Just let some bits for £180/ac. We keep SFP and we get the SFI if I decide to put it in. They do all reseeding, fert and spraying and take hay/hayledge and graze it for that. We provide the water. They put an electric fence up when grazing. It’s not a big area but all small bits totalling 20 acres.

They pull there pants down for you aswell?

 

[David.]

There's one thing certain, if you won't pay it, the next man in line will.

 

[Pottersfarm]

You’ve done very well, I’d consider stuff we had at half the price on similar terms as way too expensive.

Sadly taking it out of production via SFI will bottom the rental market.

 

[Yale]

Sadly taking it out of production via SFI will bottom the rental market.

Not without cost if you have to establish a cover crop etc. though.