NEW FARMERS. ADVICE NEEDED. price per acre of grade 3 land completely floods every year. FTB

[pottyfarmer]

We are looking to get into farming and are currently challenged with submitting a tender on a 130 acre FBT. problem is no matter how much research I do and talking to the farmers I know, I cannot get a guide of what might be a reasonable offer. Being new to farming I cant tell if £60 and acre is reasonable or laughable... and for what reason ...too low? too high... HELP.
details:
130 acres Grade 3 flat land (wales)
Floods every year completely. last 18 months have seen 5 large floods. thus pasture or spring cropping advised.
Good farm buildings- cattle housing, general storage, silage clamp and livestock handling facilities
ingoing payment to outgoing tenant is appx £10,000
3 bed farm house.. not in great condition, needs some work to upstairs floorboards and corridors, suffer damp
10 year tenancy. commencing 2022
no BPS entitlements included but acquisition of entitlements may be negotiated with outgoing tenant.

ANY advice would be greatly appreciated. what is a realistic offer per acre?

 

[Wellytrack]

The flooding is only going to get worse. And your looking a 10 year tenancy? And a damp old farmhouse?

Best of luck though.

 

[Martyn]

You need to create your business plan and then create a rent from that, no good tendering if it eats all your profit. No point asking locally every farmer will give a different idea.

 

[Courier]

You are aware that BPS entitlements are rapidly reducing and then disappearing ?

 

[Martyn]

You need to create your business plan and then create a rent from that, no good tendering if it eats all your profit. No point asking locally every farmer will give a different idea.

Also structural farm house damp should be sorted by landlord pre entry and listed in protective notes.

 

[pottyfarmer]

You are aware that BPS entitlements are rapidly reducing and then disappearing ?

yes i am, and this is another reason why we are struggling to come up with an offer.
should we bother purchasing the entitlements from the current tenant... should we offer a price per acre as if there were no bps at all? seeing as there will be only 2 years of partial payment left out of the 10 year tenancy... is it even worth it.
Thanks for chiming in, any advice is so deeply appreciated.

 

[pottyfarmer]

Also structural farm house damp should be sorted by landlord pre entry and listed in protective notes.

Also structural farm house damp should be sorted by landlord pre entry and listed in protective notes.

Yes, thank you, we have considered this and we would look to ensure it is included in agreement.

 

[Martyn]

What is your plan for the farm? Do you have other income source? I would do five year cash flow plans including BPS and one without, do it as an EXcel spread sheet if you can. Then you can alter around with a formula base to see what figures look like, be realistic, expect big spend for first three years on things like tenants improvement.
You need to be honest and trust your instink on figures then you can create a sensible rent offer.

 

[tepapa]

Well your £60/ acre figure is reasonable if you plan to make a profit but also laughable as it's about £200 below what i'd expect it to be.

 

[farmerm]

This all sounds familiar, this the planned beef and horse ranch near Shrewsbury....

 

[Formatted]

The farm you're talking about is the one with Balfours. Its in the middle of a dairy area, its going to be £200 an acre easily

 

[pottyfarmer]

The farm you're talking about is the one with Balfours. Its in the middle of a dairy area, its going to be £200 an acre easily

wow ok, thanks for the insight, we appreciate it.

 

[Flat 10]

We are looking to get into farming and are currently challenged with submitting a tender on a 130 acre FBT. problem is no matter how much research I do and talking to the farmers I know, I cannot get a guide of what might be a reasonable offer. Being new to farming I cant tell if £60 and acre is reasonable or laughable... and for what reason ...too low? too high... HELP.
details:
130 acres Grade 3 flat land (wales)
Floods every year completely. last 18 months have seen 5 large floods. thus pasture or spring cropping advised.
Good farm buildings- cattle housing, general storage, silage clamp and livestock handling facilities
ingoing payment to outgoing tenant is appx £10,000
3 bed farm house.. not in great condition, needs some work to upstairs floorboards and corridors, suffer damp
10 year tenancy. commencing 2022
no BPS entitlements included but acquisition of entitlements may be negotiated with outgoing tenant.

ANY advice would be greatly appreciated. what is a realistic offer per acre?

What are you paying outgoing tenant £10k for?