New into farming tenant farm

[Northdowns Martin]

Had a conversion with a friend who's thinking of investing into a farm to let. Got onto subject of how young/new entrants get into farming without plenty of money or farming in the family. This is where he thought he would get most pleasure from. The ideal senario we came around to was on the lines of a Council let farm of say 50-150 ac, with modest home and buildings based around livestock. Possiblities of conversion for a holiday lets, campsite etc to enable a keen tenant to develop their farming ambitions with a ready made source of outside income. Sounds feasible enough however this is where our knowledge dwindles and advise sought after. What would be a good length of tenure to offer? We thought 5 years but maybe too short - lengthly enough to see if farming was for them, not just a pipe dream, 5 years to impress a bank manager into borrowing to buy or rent larger unit. Is this how Council farm lettings work or are they generally for longer and extendable tenancies?

 

[organicguy]

5 years with option to extend to 10 but have to leave then.

 

[Formatted]

We thought 5 years but maybe too short - lengthly enough to see if farming was for them, not just a pipe dream, 5 years to impress a bank manager into borrowing to buy or rent larger unit. Is this how Council farm lettings work or are they generally for longer and extendable tenancies?

I might be controversial, but a 4 plus + 3-year extension, based on need e.g. they've applied for a few tenancies but been told they need more experience, or capital etc would be better for your goal. If you really want to give people a 'leg up' you want to attract people who want to move on, offering a long period might make it a bit too comfortable. The trade-off is, that they won't invest in the farm as much, why should they, they aren't there for very long.

It is probably worth reaching out to the tenant farmers association and having a chat with them, they'll be able to share what they think is best practice

 

[onesiedale]

we went through two council holdings in rapid succession a 3 yr FBT and 5 yr FBT .
The beauty of them was as soon as you were in them you knew you were looking for the next step. This then meant there was NO incentive to over-capitalise the place by investing and we were sharp enough to move..
Exactly what council holdings should do.
Diversifying and investing in a council holding is wrong imho , as all it does is make it more difficult for the incoming new entrant.
They should simply be a base for new entrants to cut their teeth, make a start, make a few mistakes and then get out into the private sector.... if that is what they (the new entrants) really want to do.

 

[yellow belly]

Had a conversion with a friend who's thinking of investing into a farm to let. Got onto subject of how young/new entrants get into farming without plenty of money or farming in the family. This is where he thought he would get most pleasure from. The ideal senario we came around to was on the lines of a Council let farm of say 50-150 ac, with modest home and buildings based around livestock. Possiblities of conversion for a holiday lets, campsite etc to enable a keen tenant to develop their farming ambitions with a ready made source of outside income. Sounds feasible enough however this is where our knowledge dwindles and advise sought after. What would be a good length of tenure to offer? We thought 5 years but maybe too short - lengthly enough to see if farming was for them, not just a pipe dream, 5 years to impress a bank manager into borrowing to buy or rent larger unit. Is this how Council farm lettings work or are they generally for longer and extendable tenancies?

Wait till after the budget

 

[glasshouse]

Wait till after the budget

Why?

 

[yellow belly]

Why?

The price of land