Price of Farmland

[fgc325j]

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.

Small farms may unfortunately suffer the same fate as small abattoirs. Small farmers HAVE suffered - when the old man started farming, in 1960,
there were 32 pick-ups for the milk lorry, all in a 8 mile run from first to last. Nowadays - none.
[/QUOTE]

 

[farmerm]

Forgive me as I'm probably a bite short of a sandwich, but are you saying you can't earn enough farming to buy land ?

In many instances absolutely! If you buy land at £10,000/ac @ 3% interest (be it borrowed or interest foregone on cash that could be used elsewhere) over 25 years cost is £10K+£7.5K interest

So to earn enough to buy land over 25 years off its earnings you need £17.5k /25years ie a profit of £700/ac whilst being able to earn enough on top of this to live. I sure as heck don't make anything like that! Land is a reasonably low risk place to invest excess cash but a pretty sh*t place to invest in using borrowed money!

 

[Hfd Cattle]

In many instances absolutely! If you buy land at £10,000/ac @ 3% interest (be it borrowed or interest foregone on cash that could be used elsewhere) over 25 years cost is £10K+£7.5K interest

So to earn enough to buy land over 25 years off its earnings you need £17.5k /25years ie a profit of £700/ac whilst being able to earn enough on top of this to live. I sure as heck don't make anything like that! Land is a reasonably low risk place to invest excess cash but a pretty sh*t place to invest in using borrowed money!

There is a small argument for increased value on original property ....I recently bought 12 acres which was a field between 2 holdings that I own and I had the money . I would have been a fool not to have bought it as it now joins my ground up and has substantially increased the value of the holding that I've added it too . Another factor was the worry about who else would buy it ......
That said however, would i borrow money to buy land , I doubt it .

 

[No wot]

I've just seen that Brightwells have sold a 250 acre farm, grade 1 listed house & buildings for 4.7 million , either has alot going for it or a farmer with rollover burning a hole in his pocket

 

[Hfd Cattle]

I've just seen that Brightwells have sold a 250 acre farm, grade 1 listed house & buildings for 4.7 million , either has alot going for it or a farmer with rollover burning a hole in his pocket

Been discussed earlier in the thread !!

 

[lloyd]

I've just seen that Brightwells have sold a 250 acre farm, grade 1 listed house & buildings for 4.7 million , either has alot going for it or a farmer with rollover burning a hole in his pocket

Second time sold in 14 years.
First time reported as making alot less than the guide.

 

[shakerator]

I think after Wednesday we are going to have a much clearer picture of future land price trajectory.

diesel tax or inheritance

farmer or owner

I don’t think both will be given both barrels

 

[Werzle]

Second time sold in 14 years.
First time reported as making alot less than the guide.

Earn't over 100k a year in uplift

 

[SteveHudd]

Earn't over 100k a year in uplift

Scary amount of potential capital gains tax…

 

[sexy lexy]

so your friend and relations are able to afford to buy land and “live like lords” because of their past investments - well done to them fur the shrewd investment of the past but that’s not the same as buying land with income from the trade of farming

why on earth can farmers not understand this VERY important difference between farming (trade) and land ownership (investment) ? . They are NOT linked

Lot of land traded locally, bought by mixture of dairy/arable guys with no sign of other sources of income, just good at what they do, definitely a few quid profit at the moment, it's the big extensive contract farmers locally who are not buying, because they can't afford to on the wafer thin margins of contract farming

 

[texelburger]

250 acre farm with decent house and buildings just sold for 5 million in Hereford ......3 bidders at auction competing ,all farmers !!

Local farmers ? Do you know who bought it ?

 

[Jackov Altraids]

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!

Of particular significance was France and Germany's decision to block exports of medical supplies. The importance of this is shown by how quickly they were 'encouraged' to change their minds.
Its all very well believing in free markets but what value does food and medicines have when they are short?...... Producing countries will always look after their own needs before selling any extra, no matter what.
If this pandemic starts to really bite it will soon come down to who has the products that people really need will be trading and the ability to pay in cash will mean very little.

 

[Hfd Cattle]

Local farmers ? Do you know who bought it ?

No. Word will soon get around though !

 

[nelson]

Local farmers ? Do you know who bought it ?

yes have know for over a week i am surprise that more people dont he has 4 other farms in the county but its not for me to put his name on here

 

[Bossfarmer]

yes have know for over a week i am surprise that more people dont he has 4 other farms in the county but its not for me to put his name on here

what type of farming is this guy into? carrots? ill bet its not sheep or suckers

 

[jackrussell101]

what type of farming is this guy into? carrots? ill bet its not sheep or suckers

Milking cows on a lucrative Tesco contract probably

 

[jackrussell101]

Chap near me milks 400 high yielding dairy cows on Muller Tesco and made £380,000 profit last year, reckons he's been averaging that for years, he's bought an additional 200 acres in the last 5 years and been through a divorce so he must be generating some money from somewhere

 

[Scholsey]

Within 10 miles of me in north Herefordshire 2 200 acre or so farms have sold recently, buildings very average at both, one sold for 6k a acre one sold for 19k a acre......

 

[Bossfarmer]

Chap near me milks 400 high yielding dairy cows on Muller Tesco and made £380,000 profit last year, reckons he's been averaging that for years, he's bought an additional 200 acres in the last 5 years and been through a divorce so he must be generating some money from somewhere

so your talking near enough 1000/cow? lets say £800 as he will prob be including sfp in that

 

[jackrussell101]

so your talking near enough 1000/cow? lets say £800 as he will prob be including sfp in that

Yeah that sounds about right, good technical operation but is definitely helped by premium milk contract