Grazing value

[ppottersfarm]

I’ve been given the task of valuing my FIL’s grassland for annual rental as he’s now to old to look after it himself. Its 100ac of long term grass in 6 fields. All with stockproof (sheep) fencing and water. Northampton.
Its not for sale and only an annual grazing agreement for sheep only. The FIL has sold his sheep so we are looking to let somebody else utilise it. There’s no yard or buildings just straight grassland. Plenty of room to put up a sheep race etc.
Whats the value ?

 

[Lincs]

£5000

 

[d-wales]

I'd agree with £5000 as a start point.

Maybe a bit more though if the grass hasn't been overrated previously and will grow well in the year.

And maybe more of there is a local farmer desperately hunting for grass

 

[serf]

£5000

Could get over £6k for it by doing nothing but filling a form in , low input SFI .

 

[Still Farming]

Could get over £6k for it by doing nothing but filling a form in , low input SFI .

They bound to know the aid/grant they could get possibly???

 

[exmoorromney]

Could get over £6k for it by doing nothing but filling a form in , low input SFI .

They can do both surely?

 

[serf]

They can do both surely?

Yes , hence why the £5k is to low !

 

[exmoorromney]

Yes , hence why the £5k is to low !

Why? They get £6000 SFI plus the £5000 for grazing.

 

[haymaker80]

Very area dependent. Would be £12-15K round here for good grass if it's well fenced, other parts of the country grazing land is offered for next to nothing just to keep land tidy.

 

[serf]

Why? They get £6000 SFI plus the £5000 for grazing.

I was looking at it from a total income from the plot incase the Op didn't factor in the SFI

 

[ppottersfarm]

Could get over £6k for it by doing nothing but filling a form in , low input SFI .

No SFI or subsidy as its not registered although we are looking at the options presently but for now they are not included. Also if it went into SFI surely it would reduce the rental value due to the rules? (I dont have any grassland myself so never looked at the grass SFI options). As well as increasing costs to implement the SFI?
We are not local so cant help with stuff like that hence why we want to keep it as simple as possible.

 

[Hill Ground]

The low input grazing rules are basically:
No fert
Spot spray only
Can feed don't poach
Not over stocked.

All of these are easily achievable with a grazier who's willing to cooperate.

If it's 6 fields you probably have a fair bit of hedgerow you can claim for £/m

My advise for what it's worth is don't try and squeeze every ££ out of the grazier. You want someone who will look after it and take a long term approach so the rent has to be sustainable all round.

 

[onesiedale]

don't forget any scheme /SFI money carries a risk and that is largely carried by the tenant, so don't assume that rental value should have scheme/SFI simply added to any rental value.

 

[serf]

Surely it's poss to register the ground,
Also might want to wait and see what the rules are after the budget in October
( if the government last that long ...) here's hoping hey

 

[ppottersfarm]

The low input grazing rules are basically:
No fert
Spot spray only
Can feed don't poach
Not over stocked.

All of these are easily achievable with a grazier who's willing to cooperate.

If it's 6 fields you probably have a fair bit of hedgerow you can claim for £/m

My advise for what it's worth is don't try and squeeze every ££ out of the grazier. You want someone who will look after it and take a long term approach so the rent has to be sustainable all round.

By the sounds of things SFI isnt an option whilst renting it because we are 150 miles away so cant keep an eye on it. If the grazier poached it or put fert on it, and then it was inspected they could fine the FIL and want the whole lot back. Even worse if in year 3 when they would typically inspect as the agreement ends.
Even if the annual grazing license detailed all this getting money back in a legal wrangle is not where we want to be with this as he’s in his late 70’s.

 

[upnortheast]

Maybe worth talking to a local agent who will know the local demand & could advise on the benifit or otherwise of SFI in your situation

 

[Hill Ground]

By the sounds of things SFI isnt an option whilst renting it because we are 150 miles away so cant keep an eye on it. If the grazier poached it or put fert on it, and then it was inspected they could fine the FIL and want the whole lot back. Even worse if in year 3 when they would typically inspect as the agreement ends.
Even if the annual grazing license detailed all this getting money back in a legal wrangle is not where we want to be with this as he’s in his late 70’s.

All my grazing licences state that if my actions as the grazier result in the landlord receiving a sfi fine then I am liable. I think it's pretty standard.

Completely understand you want it as simple as possible.

I assume your FIL has been there a while. He probably has a friend or neighbour who would take it on, or could recommend someone local. And if they know and respect your FIL they would probably be happy with a fair rent as mentioned above or a bit below and keep it as there own just because.

That's the win win situation, then FIL has someone he knows and trusts around the place, and he can even offer to keep half an eye on the stock which is good for these old boys, as he can still get out on the farm without being responsible for any issues.

 

[ppottersfarm]

All my grazing licences state that if my actions as the grazier result in the landlord receiving a sfi fine then I am liable. I think it's pretty standard.

Completely understand you want it as simple as possible.

I assume your FIL has been there a while. He probably has a friend or neighbour who would take it on, or could recommend someone local. And if they know and respect your FIL they would probably be happy with a fair rent as mentioned above or a bit below and keep it as there own just because.

That's the win win situation, then FIL has someone he knows and trusts around the place, and he can even offer to keep half an eye on the stock which is good for these old boys, as he can still get out on the farm without being responsible for any issues.

Sadly not as he’s moving to us for health reasons so his place is not going to be seen by family to keep an eye on it. His neighbours and friends are all combinable/root growers so again not an option. We have spoke to an agent but I just wanted an idea from the forum to give me a base in discussions.

 

[Lincs]

Sadly not as he’s moving to us for health reasons so his place is not going to be seen by family to keep an eye on it. His neighbours and friends are all combinable/root growers so again not an option. We have spoke to an agent but I just wanted an idea from the forum to give me a base in discussions.

Sell it.

 

[serf]

Sell it.

And have even more of a tax headache if the old lads health fails , than leaving it in a "safe place" as the rules stand now ...