It made 4.7m at a private auction between the three farmers who tendered similar amounts . First auction of its kind. There is a write-up on the brightwells fb page
Price of Farmland
- Thread starter Pie face
- Start date
we have bought land in the last few years but not with farming income, past commercial and residential property investment is paying for it
i’ve also sold land (for a profit). to buy other land where i can see a future bigger profit
no way i would even consider buying land with farming income - just not possible on arable at least abs i would say we are as efficient / profitable as any
i’ve also sold land (for a profit). to buy other land where i can see a future bigger profit
no way i would even consider buying land with farming income - just not possible on arable at least abs i would say we are as efficient / profitable as any
midlandslad
Member
- Location
- Midlands
Over the last 15 years farmland has been seen as a sexy asset on the back of year on year capital growth. back in 2005 I saw very good farms struggle to find buyers.
In my view this turn as farmers are more reluctant to purchase land, the availability of finance tightens, loss/reduction of inheritance tax reliefs, expanding farmers with an appetite are borrowed heavily and reduction in support.
there will always be pockets where farms make top dollar as there is rollover money about.
the true test will be if the land supply ticks back up to normal levels.
In my view this turn as farmers are more reluctant to purchase land, the availability of finance tightens, loss/reduction of inheritance tax reliefs, expanding farmers with an appetite are borrowed heavily and reduction in support.
there will always be pockets where farms make top dollar as there is rollover money about.
the true test will be if the land supply ticks back up to normal levels.
glasshouse
Member
- Location
- lothians
It cant drop quick enough
Didn't think it was unprecedented, to get the tendering parties round the table to
find out who REALLY wanted it?
Yes you are correct, i read the press release wrong. It was a first for the young auctioneer conducting the sale. Makes a slight mockery of the tender process.
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Indeed it does; more honest if they just auctioned it. but you wont know who's truly in at a public auction.
Until tenderers man up and say "Tender is a tender, bugger off", at risk of missing a once in a lifetime chance, they will get away with it.
But I suppose seller can only sell it once...
Until tenderers man up and say "Tender is a tender, bugger off", at risk of missing a once in a lifetime chance, they will get away with it.
But I suppose seller can only sell it once...
Bossfarmer
Member
- Location
- between Perth and Inverness
not true, a dairy on a supermarket aligned contract will buy land for fun and most do
Bossfarmer
Member
- Location
- between Perth and Inverness
your turnover and therefore margins are very limited with arable, more intensive types of farming i.e poultry, dairy, veg can and do pay for ground out of farming especially veg as they can factor it into a reduction in rent, big potato farmers that sold at £300/t last year have also been buying ground lately
turnover dues to not provide cash to invest - profit does
not sure i would want to be a potato grower this year - rumours of several big ones going bust around here
you certainly don’t buy land off one years profit - not since the 60’s anyway !!
not a hope out of trading profit !
maybe off the back of previous land investment and ability to borrow however
Bossfarmer
Member
- Location
- between Perth and Inverness
i higher turnover business makes higher profits possible, who said anything about one years profit? obviously a few years of saving would be needed along with a mortgage
lloyd
Member
- Location
- Herefordshire
Rumours are a dangerous thing.
Farmland has avoided taxation in the past, as food production was seen to be needed in the event of a war. Therefore farming recieved beneficial treatment.
However, the world has changed. The current virus has proved that any future war will be virus based, with the potential to wipe out a country within a matter of days, at minimal cost. Farming is no longer seen as important.
Over the next decade be prepared for business rates, IHT relief removals and other taxation bringing agriculture in line with other industries. All these will have a negative impact on land values.
Imagine paying the current rate of business rates on a standard family sized farm with buildings! There will be a mad rush to sell up.
30 years ago farmers and butchers were saying that the closure of small abattoirs would be the death of the British Meat industry. 30 years on, after the closure of hundreds of small abattoirs the meat industry is still going strong. Small farms may unfortunately suffer the same fate as small abattoirs.
However, the world has changed. The current virus has proved that any future war will be virus based, with the potential to wipe out a country within a matter of days, at minimal cost. Farming is no longer seen as important.
Over the next decade be prepared for business rates, IHT relief removals and other taxation bringing agriculture in line with other industries. All these will have a negative impact on land values.
Imagine paying the current rate of business rates on a standard family sized farm with buildings! There will be a mad rush to sell up.
30 years ago farmers and butchers were saying that the closure of small abattoirs would be the death of the British Meat industry. 30 years on, after the closure of hundreds of small abattoirs the meat industry is still going strong. Small farms may unfortunately suffer the same fate as small abattoirs.
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lloyd
Member
- Location
- Herefordshire
Wrong.
Food security will be back on the agenda .
This virus shows that we can not rely soley on foreign imports
that come from destinations that might not adhere to our quality
controls.In fact this virus in a perverse sort of way might help UK farmers
become valued once again.
The lamb industry is going strong due to export demand nothing to
do with our generous home supermarkets which some are now
stocking NZ lamb diverted from China.
- Location
- Hereford
Agreed ! The value of UK farming to the UK public may just come to the fore .
Totally disagree. Covid 19 shows the weaknesses of globalisation in all its glory. Self sufficiency and survival are still one of the most important factors in any modern state, we've just had a period where we haven't been short of food in recent decades. Food shortages will eventually occur again, it's just when, no one could have predicted this virus and look how much chaos has happened in 9 weeks... since the first person caught it off a wild animal market in December... these things sneak up on us rarely when we least expect. Regarding taxation of farms I see as very unlikely, no politician wants to increase the cost of food which is exactly what they will do if they start throwing business rates around. Our enemy is much more likely to be cheap imports... in the short term at least until there is a shortage!
All we need to do now is survive the virus?
Im not switched on to all the borrowing do's and donts but reading about some of amc's loan options some can have a loan entirely on interest only payments for the duration and then pay the lump back at the end which in the past would of seen the farms grow into mega profit.Perhaps with a bit of additional finance from
“AMC”.