Price of Farmland

[Tarw Coch]

drivel, they only stick it because theyre not properly costing their time

That may just be how they hang on in when the proper businessman calls it a day, unlesss the businessman wants to work for nowt as well

 

[essexpete]

That may just be how they hang on in when the proper businessman calls it a day, unlesss the businessman wants to work for nowt as well

Are they working for nowt? Possibly a nice house with space around it. Quite a few tax perks costed in as business expenses, able to make a decision for themselves as to what to do each morning (it might always be milking the cows admittedly) and probably a host of other things.

 

[DrWazzock]

Are they working for nowt? Possibly a nice house with space around it. Quite a few tax perks costed in as business expenses, able to make a decision for themselves as to what to do each morning (it might always be milking the cows admittedly) and probably a host of other things.

That’s right. Can’t put a price on it . I have worked for corporations.Am happy with a £20k drop just for the freedom of making my own decisions.

 

[D14]

Family farms with no borrowings and family labour are well set if they are actually good at farming.
I’m not worried I only grow for premium markets through my co op central store. I know who the processors are going to want to deal with for large amounts of on spec malting barley and milling wheat.

Yes a merchant who any farmer call sell a 29t load to.

 

[ollie989898]

you dont think more people will aim at your markets if feed wheats £100/t? supply and demand your premiums wont be worth as much if supply is much greater surely you realise this?

Err, the people who are able to grow high end grains are already doing it largely and will be geared up to grow and store it.

 

[Tarw Coch]

Are they working for nowt? Possibly a nice house with space around it. Quite a few tax perks costed in as business expenses, able to make a decision for themselves as to what to do each morning (it might always be milking the cows admittedly) and probably a host of other things.

Probably not but an earlier post referred to family farms only carrying on because they’re not properly costing their time, how much is a farmer worth? £10 hour, £15 overtime? There have been plenty of threads on here where that would be mocked as appropriate pay for an employee yet if the farmer was working 60-80 hours a week, quite possible if they’re determined to carry on whatever that would be £700-££1000 a week, and they could be working 7 days a week, 52 weeks of the year. Reality is they could get by on an awful lot less than that depending on how careful they were , they could get by on far less than minimum wage, no employee would stand for that and anyone buisness minded would say it’s not worth it but for those who are determined to carry on,they need little more than a roof over their head and food to put on the table

 

[egbert]

700 acres of prime fenland for sale across the road from my house if anyone can lend me £7million+

Only need to find £508/acre or £408000/year for 25 years to fund it......

and on the upside, just as you finish paying for it, it'll probably be underwater.....

 

[jackrussell101]

Clive
I am not sure how old you are or how long you expect to live for, but I would be careful about making statements about interest rates.

While I would agree with you we are unlikely to see interest rates rise in the short term that will not be the case in the mid term, by that I mean in 3 to 5 years we will see rates increase.
The only way all the debt that is being created will be paid for is through inflation, and yes land could be a sensible hedge against this. However one way to rein in runaway inflation is to increase interest rates. Remember we will need a relatively strong currency against the dollar as we manufacture very little these days and will have high levels of imports.

The conservatives will not increase taxation too much but inflation will make everyone feel better as will all those pensioners who have all the cash and will appreciate earning some interest on it!

The best return recently was to have put money in the Stock market about 2 months ago and seen a 20% plus gain and still going up!

I'm afraid the bonds markets disagree with you...

 

[jackrussell101]

Do you think that ag returns will be at this level once the BPS is removed?

I'm would be fairly relaxed even if they completely removed our subsidies, why? Because they are not going to get milk, beef, lamb or corn cheaper than what they have had it in the last decade...

Everything has an equilibrium price in economics... for example cut my subsidy to my dairy farm and Muller will just have to pay more for the milk, Tesco will have to pay more for the dairy products it buys off Muller, and most importantly the UK consumer would end up paying more for the dairy products it buys off Tesco...

Ultimately if I do not receive a satisfactory return on investment on my dairy farm I will pack up... can we really envisage a situation where all our food comes from abroad and there is no food production here? A pessimist will say yes, but it would never happen in the real world...

 

[Bossfarmer]

If they can make it through a financial year with a roof over head, food on the table, owing very little to anyone else and are happy does the costing of time matter?

not if its a hobby or just a way of life until farmer retires thats fair enough, if its to be a viable business and a younger generation to come forward and continue the business the yes it does matter, it needs to be a viable business against other career choices

 

[Bossfarmer]

I am only sticking it because I am not properly costing my time........... but then again where I live it’s as good as a four star hotel so I am not properly costing my accommodation so that balances it out.

I could go live in Turnip Street and work in an office for three times as much (hell I used to do that in fact) but it was sh!t. Closest I got to happiness was volunteering with the National Trust clearing rhododendrons at Alderley Edge on a weekend.

you do realise you can live in the countryside and work from home these days? plenty folk on 60k a year plus and doing so, walk the dogs etc, farmers need to get out of this mindset i get to live in the countryside so ill work for peanuts so that the poor tax payers in the town can have cheap food, my neighbours on steading developments come home in their range rovers at 6 and are out walking their dogs at 9 while im still working

 

[Bossfarmer]

I'm would be fairly relaxed even if they completely removed our subsidies, why? Because they are not going to get milk, beef, lamb or corn cheaper than what they have had it in the last decade...

Everything has an equilibrium price in economics... for example cut my subsidy to my dairy farm and Muller will just have to pay more for the milk, Tesco will have to pay more for the dairy products it buys off Muller, and most importantly the UK consumer would end up paying more for the dairy products it buys off Tesco...

Ultimately if I do not receive a satisfactory return on investment on my dairy farm I will pack up... can we really envisage a situation where all our food comes from abroad and there is no food production here? A pessimist will say yes, but it would never happen in the real world...

sadly it doesnt work like this with beef/sheep/cereals which is why i would immediately look to set up in dairy if the subs went up here, and i wont be the only one

 

[jackrussell101]

sadly it doesnt work like this with beef/sheep/cereals which is why i would immediately look to set up in dairy if the subs went up here, and i wont be the only one

So you're suggesting that all beef, lamb and cereal farms and their processors who they supply are going to disappear completely if subsidies go?

I think you'll find the farm gate prices of these products will increase to compensate for the loss of subsidies.

In any case, subsidies will not disappear, they will just be rebranded.

 

[Bossfarmer]

So you're suggesting that all beef, lamb and cereal farms and their processors who they supply are going to disappear completely if subsidies go?

I think you'll find the farm gate prices of these products will increase to compensate for the loss of subsidies.

In any case, subsidies will not disappear, they will just be rebranded.

is the world wheat price going to jump if our subs go? dont think so, will heavily subsidised irish beef stop coming across to undercut us if our subs go? i dont think so, explain how our prices can go up when the supermarkets buy the cheapest? same with NZ lamb, please expain how our prices will go up? all that will happen is a sharp decline in home production to be replaced with imports

 

[jackrussell101]

is the world wheat price going to jump if our subs go? dont think so, will heavily subsidised irish beef stop coming across to undercut us if our subs go? i dont think so, explain how our prices can go up when the supermarkets buy the cheapest? same with NZ lamb, please expain how our prices will go up? all that will happen is a sharp decline in home production to be replaced with imports

And do you think that the UK government is really going to get rid of its domestic agriculture?

Even the most dumbest politician, left or right wing would never do that so subsidies will stay.

Alot of arable farmers are subsidized worldwide, as are the Irish beef farmers, and can NZ sheep farmers really supply the whole world with their lamb? Get real...

 

[essexpete]

not if its a hobby or just a way of life until farmer retires thats fair enough, if its to be a viable business and a younger generation to come forward and continue the business the yes it does matter, it needs to be a viable business against other career choices

Well I take your point that the business has to be viable to support a second developing household if a younger generation wants to come forward. If not the farmer can continue until such time retirement is necessary.

 

[jendan]

and on the upside, just as you finish paying for it, it'll probably be underwater.....

The first question anyone should ask if considering buying farmland now is,"does it flood?" and how high above sea level?

 

[R J]

sadly it doesnt work like this with beef/sheep/cereals which is why i would immediately look to set up in dairy if the subs went up here, and i wont be the only one

If you wait until then to set up you will be too late !

 

[Sheeponfire]

700 acres of prime fenland for sale across the road from my house if anyone can lend me £7million+

Only need to find £508/acre or £408000/year for 25 years to fund it......

Crack on.... What ya waiting for!!

 

[Sheeponfire]

If they can make it through a financial year with a roof over head, food on the table, owing very little to anyone else and are happy does the costing of time matter?

Agreed...
As the other option would be go and join the masses....

Who may or may not have a job /income very soon...

Whatever scale one is at in farming just now... If you are making it work... Then it is a very fortunate position to be in right now I think...