Land prices

[midlandslad]

Only a proportion of it. The BPS is all profit whereas there will be costs and income forgone with SFI.
The removal of BPS has been forgotten by banks, but when it is on their radar they will find it very difficult to lend new money when stress testing loans, particularly when they are looking at the last three years accounts which will be average at best, until you include current years.

 

[mountfarm]

90ac with house £21k/ac
150ac with house and buildings £22.5k/ac
110ac £22k/ac
120ac with house and buildings £25k/ac
All bought by farmers to farm them but some funded by rollover money and others blended into larger acreages.

 

[midlandslad]

90ac with house £21k/ac
150ac with house and buildings £22.5k/ac
110ac £22k/ac
120ac with house and buildings £25k/ac
All bought by farmers to farm them but some funded by rollover money and others blended into larger acreages.

Where are all of these?

 

[deere 6600]

90ac with house £21k/ac
150ac with house and buildings £22.5k/ac
110ac £22k/ac
120ac with house and buildings £25k/ac
All bought by farmers to farm them but some funded by rollover money and others blended into larger acreages.

Am I the only one that thinks this is a lot sorry a helluva lot of money

 

[texelburger]

Heard of a hundred acres going for 16k an acre locally. So going up

That's the normal around our area,lots of successful, hungry farmers.

 

[Derrick Hughes]

The only way is up

 

[glasshouse]

The only way is up

Thats what they said in the seventies, till thatcher spiked it

 

[glasshouse]

Am I the only one that thinks this is a lot sorry a helluva lot of money

No

 

[tullah]

Thats what they said in the seventies, till thatcher spiked it

Wasnt that when inflation was ripping and land went the opposite way

 

[jackrussell101]

To be fair land has been fairly static at £10k an acre for last 10 years, probably about time it increased, every other thing has.

 

[midlandslad]

Are farmers better off with high land prices though?

 

[pellow]

Are farmers better off with high land prices though?

Depends what time of life the prices are high and other things like if you have siblings to pay off

 

[toquark]

Marginal and plantable hill land has increased two or three fold since the pandemic here. This won’t come back, but has probably plateaued, the increase has been attributable to these factors:

- Corporate greening & carbon offsetting
- Attractive planting grants
- Highly profitable commercial timber returns
- Ageing demographic of hill land owners with no one coming along behind them

The better dairy & arable land price hasn’t really gone up much and is much more closely linked to farm profitability (or should I say the farmer’s ability to service the debt…)

 

[Humble Village Farmer]

Am I the only one that thinks this is a lot sorry a helluva lot of money

Money's losing value all the time

 

[Humble Village Farmer]

We all know that land prices are driven by iht and rollover money. Potential earnings are definitely very much a secondary consideration.

There's always someone who has too much money to keep out the small or first time buyer.

The only consolation is that you don't have to own the land to farm it.

 

[midlandslad]

Depends what time of life the prices are high and other things like if you have siblings to pay off

It becomes a proper noose around your neck if you are having to buy siblings out every generation. The return on capital from farming is at best 2% so if you have to buy out your sibling from 50% you are essentially just going backwards.

 

[glasshouse]

Wasnt that when inflation was ripping and land went the opposite way

No, land shot up tenfold in the seventies, but then thatcher put up interest rates to 15% or more which collapsed land back to £1000/ ac by 1986
Bad weather and cap reform helped drop it too

 

[Still Farming]

Only the rain comes down!

 

[glasshouse]

The current fiscal lunacy in the uk cant continue forever

 

[mountfarm]

Land prices won’t drop even if interest rates went to 10%. There’s to many new interested parties wanting carbon credits and greening via tree planting and rewilding etc. Also do not underestimate the sheer volume of money people have in bank accounts and that includes farmers.