Land Tender and Entitlement value?

[Phil P]

I’m looking at putting a tender together for a 5 year FBT, it’s a decent size block of land but will need some tidying up in the first year. It’s a mixture of soil types grade 1-3 but after having a dig this morning I’d say predominantly grad 2, will be fine for what we grow

If I’m successful I will need buy the entitlements, so my questions are

1 - What are entitlements worth at the moment?

2 - Will they still have a value after 5 years?

3 - Should I be looking at a reducing the rent at the same rate as bps?

3 - Should I average the bps Over 5 year’s and offer a fixed rate with a reduction on the first year to cover getting the land into production?

4 -Anyone want to throw some figures around for rents?
I know where I need need to be at to make money, but what would I need to be at to get it ?

5 - Any other considerations?

 

[Chae1]

Best of luck.

But they probably already know who they are going to rent it to. You probably do too.

 

[Phil P]

Best of luck.

But they probably already know who they are going to rent it to. You probably do too.

Tbh, I’m not sure which way this could go! It’s been contract farmed (Of a fashion) for the estate for the last two years and it’s not been advertised. Still not getting my hopes up though?

 

[Chae1]

Tbh, I’m not sure which way this could go! It’s been contract farmed (Of a fashion) for the estate for the last two years and it’s not been advertised. Still not getting my hopes up though?

You've probably got a good chance then if it's not been advertised and you've been asked to tender. Probably a good thing if they've already had there fingers burnt with contract farming. They'll have an idea it's not easy.

 

[Phil P]

Oh well, looks like I’ll be need a bigger combine next year

 

[Flat 10]

If you can make more out of farming than fixing tractors you are a genius and I need lessons. I have taken on land and often wonder whether I’ve done the right thing.....

 

[fieldfarmer]

Oh well, looks like I’ll be need a bigger combine next year

I bet it will be real easy to sell that sprayer mind! Real tidy. Or might it just cope?

 

[Phil P]

If you can make more out of farming than fixing tractors you are a genius and I need lessons. I have taken on land and often wonder whether I’ve done the right thing.....

I think I should be ok, on some land I rent I don’t get the bps and it works out a lot more than I’ll be paying for this. I only offered a sensible rent, I only found out after yesterday that two friends had also put in for it and I’m pretty sure they will have offered a lot more than me.
After been interviewed by an estate trustee and a Lord Newton himself I get the impression it’s not all about the money! They want a long term tenant who will look after the land. It’s a rolling 5 year tenancy so hopefully should be on there for a long time, so I’ve no issues putting lime on or investing in drainage etc.

 

[Phil P]

I bet it will be real easy to sell that sprayer mind! Real tidy. Or might it just cope?

Sprayer will be fine , will have to look at a water bowser though.

 

[Chae1]

Oh well, looks like I’ll be need a bigger combine next year

Congratulations.

They must like that plough and power harrow!

 

[Steevo]

Oh well, looks like I’ll be need a bigger combine next year

Congratulations!!

Must be some chunk of land if your existing machine won’t cope!

 

[Phil P]

Congratulations!!

Must be some chunk of land if your existing machine won’t cope!

Will depend if I keep the contracting work on as well, it’s a third more land to what I already farm. I may be gaining another farm next year as well but I’m already farming over half that on a 12 month fbt. The farmer wants to retire and put the whole lot on a 5 year fbt, exciting times

 

[Steevo]

Will depend if I keep the contracting work on as well, it’s a third more land to what I already farm. I may be gaining another farm next year as well but I’m already farming over half that on a 12 month fbt. The farmer wants to retire and put the whole lot on a 5 year fbt, exciting times

Fortune favours the brave....or mad!

Hope you’re planning to add some staff.

 

[Phil P]

Fortune favours the brave....or mad!

Hope you’re planning to add some staff.

I do have someone in mind actually but plenty of contractors in the area, will definitely have to have a serious look at staffing though.
Ideally I need someone who’s handy in the workshop for out of season work.

 

[Flat 10]

I do have someone in mind actually but plenty of contractors in the area, will definitely have to have a serious look at staffing though.
Ideally I need someone who’s handy in the workshop for out of season work.

Easier said than done

 

[Phil P]

Easier said than done

That’s the reason I’ve not taken anyone on up to now, will have to make the jump into employing sooner rather than later now though.

 

[ploughman1963]

I think I should be ok, on some land I rent I don’t get the bps and it works out a lot more than I’ll be paying for this. I only offered a sensible rent, I only found out after yesterday that two friends had also put in for it and I’m pretty sure they will have offered a lot more than me.
After been interviewed by an estate trustee and a Lord Newton himself I get the impression it’s not all about the money! They want a long term tenant who will look after the land. It’s a rolling 5 year tenancy so hopefully should be on there for a long time, so I’ve no issues putting lime on or investing in drainage etc.

I too am very lucky to have landlords with the same outlook - gives you a bit more confidence to invest in repairing drainage etc. Good luck.

 

[warksfarmer]

I’m looking at putting a tender together for a 5 year FBT, it’s a decent size block of land but will need some tidying up in the first year. It’s a mixture of soil types grade 1-3 but after having a dig this morning I’d say predominantly grad 2, will be fine for what we grow

If I’m successful I will need buy the entitlements, so my questions are

1 - What are entitlements worth at the moment?

2 - Will they still have a value after 5 years?

3 - Should I be looking at a reducing the rent at the same rate as bps?

3 - Should I average the bps Over 5 year’s and offer a fixed rate with a reduction on the first year to cover getting the land into production?

4 -Anyone want to throw some figures around for rents?
I know where I need need to be at to make money, but what would I need to be at to get it ?

5 - Any other considerations?

Was offered £150/acre and we keep subsidy a few weeks ago. Deal until 2024 and then revisited due to loss of subsidy and ELMS as we’ll be going fully into ELMS so land area for growing crops will be drastically reduced. Any root crops would see a ‘top up’ payment of £200/ac for pots and £400/ac for carrots/parsnips etc. Irrigation on suitable land £25/acre inch plus cost of the license.

 

[Warp Land Farmer]

Was offered £150/acre and we keep subsidy a few weeks ago. Deal until 2024 and then revisited due to loss of subsidy and ELMS as we’ll be going fully into ELMS so land area for growing crops will be drastically reduced. Any root crops would see a ‘top up’ payment of £200/ac for pots and £400/ac for carrots/parsnips etc. Irrigation on suitable land £25/acre inch plus cost of the license.

Are you tempted??

 

[warksfarmer]

Are you tempted??

Not at the minute but when our ELMS pilot turns to a proper agreement then yes.