Price of Farmland

[jendan]

My place is 55m above sea level and about 20 miles away from the nearest beach. Dig a hole here and chances are you will find razor shells that look as fresh as if they were on a beach. All being well the tide won't come back in during my lifetime.

But does it flood?

 

[Kidds]

No but it will one day.

 

[jackrussell101]

Guess this world, needs its dreamers.

May they never wake up.

So you can farm at a loss then every year? In the past, present and future? That's impressive and must take some doing, maybe you're the dreamer? So you think the UK countryside will be let to go completely re-wilded? And our whole food supply chain, abbotoirs, food factories and processing left to be boarded up and finished? All part of our critical infrastructure I would argue... even the most anti UK farming pro importing member/voter in the general public would see that's a silly thing to do... I think you are the one who needs to wake up and get real...

 

[D14]

Good in theory,but try doing it in practice. Every land agent you talk to will try and push you down the whole farm route."We will put it in lots if you want,but you will have far more marketing costs"...........usually eye watering sums......

Sorry it’s a fact not a theory. You don’t need a land agent to sell a farm. Anybody can put an advert in the press and then you need a solicitor.

 

[midlandslad]

Sorry it’s a fact not a theory. You don’t need a land agent to sell a farm. Anybody can put an advert in the press and then you need a solicitor.

You don’t need a land agent to sell a farm, but as you are selling your most valuable asset, surely it makes sense to use a professional with experience rather than having a go. You only get one chance to sell. Also, buyers would prefer the transparency of an agent.

 

[D14]

You don’t need a land agent to sell a farm, but as you are selling your most valuable asset, surely it makes sense to use a professional with experience rather than having a go. You only get one chance to sell. Also, buyers would prefer the transparency of an agent.

To be honest I’ve always wondered what a land agent actually offers or does and that’s coming from somebody who originally trained as one many years ago. If your wanting to sell you set your price, advertise it and instruct a solicitor. You can negotiate the price if you want or you stick to your guns.
Your point about only selling once is exactly why you need to maximise the value by splitting it up. Many agents have their favourites and will get brown envelopes after a successful deal.

 

[glasshouse]

Who does it belong to? Think I might go and buy a lotto ticket!!

You would need 3 or 4 tickets

 

[Jackov Altraids]

So you can farm at a loss then every year? In the past, present and future? That's impressive and must take some doing, maybe you're the dreamer? So you think the UK countryside will be let to go completely re-wilded? And our whole food supply chain, abbotoirs, food factories and processing left to be boarded up and finished? All part of our critical infrastructure I would argue... even the most anti UK farming pro importing member/voter in the general public would see that's a silly thing to do... I think you are the one who needs to wake up and get real...

The sad reality is that although "that's a silly thing to do...", it is the most probable outcome given the current circumstances.
The trouble with politics is that it never gets credit for being proactive. If we had managed to avoid the corona virus completely I doubt the government would have got any credit.
I think there will be a time when UK agriculture will be properly appreciated and supported but [in England particularly] I can't see it happening until after things have got pretty dire.
Hopefully I'm wrong.

 

[No wot]

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.

 

[No wot]

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.

Agricultural was on its knees between 1920 & 1939 , cheap food was what the Government's wanted , WW2 saved UK farming right up to joining the EU , which then gave UK farmers a very safe trading environment for 40 yrs , they say history repeats it self , fasten you seatbelts

 

[Frank-the-Wool]

I think you are wrong. .
Nations have moved from debt to GDP levels of a range of 30% pre 2007 When rates were normalised. To double that in the years after 2010 when the worlds banks were recapitalised. Rates dropped to half or less than normalised to a new normal.
US have managed to tighten & increase rates a bit since Trump came into power in 2016. But not EU.
Along comes the pandemic which we are in the early stages of. Now we are over 100% debt to GDP. 120% USA.

Fed rate .1% Debt rising to now 26/27 trillion. The whole world is taking a hammer blow. A Depression the like of which we have never seen is building. The population of the world is going to require vaccination.

Then the economies will require stimulating.
This is when Fed rates go minus. In a normal recession the Fed have dropped rates About 4% To stimulate.

I don’t see -4% but anything is possible.

Now how are states going to be able to cope with the debt levels should rates rise to normal ?

I am with Clive on this, I don’t see rates normalised in my life time, unless we have a whole world reset.

Just saying.

You make a very good point about debt to GDP levels, and I completely agree in the short to mid term up to 5 years away. However human nature tells me that you cannot have minus interest rates or low for very long or no one saves any money at all and are entirely reliant on the value of their house if they have one.
The only way governments and national banks are keeping things going is by printing money, eventually this will cause inflation which is what most governments want so the debt pile is eroded more quickly. However the Virus may continue for a long time and cause massive unemployment as in the depression (I personally don't think the effects of the virus will last so long!) so inflation is slower to get going depending on the strength of the currency.
As a country we do not manufacture very much any more and are hugely reliant on the service industry which will be the last element to recover from the Virus so GDP will as you rightly say remain in the doldrums for some years.

When inflation does kick off the only tool in the box to dampen it is to increase interest rates. Boris wants to do massive infrastructure building to get the economy going again, however I am not sure who is going to finance this as eventually reality of economics will come into play. There are going to be huge office blocks in London and other Cities that will be looking for another use and the need to live in or near these Cities suddenly disappears along with billions of property value.

Believe me interest rates above 0.01% will return and probably sooner than some would wish, but I accept it won't be for at least 5 years.

 

[teslacoils]

It's minus interest rates, a huge jump in UK productivity, or selling the family silver. That's it. That's what there is left now.

 

[jendan]

Agricultural was on its knees between 1920 & 1939 , cheap food was what the Government's wanted , WW2 saved UK farming right up to joining the EU , which then gave UK farmers a very safe trading environment for 40 yrs , they say history repeats it self , fasten you seatbelts

To be honest I’ve always wondered what a land agent actually offers or does and that’s coming from somebody who originally trained as one many years ago. If your wanting to sell you set your price, advertise it and instruct a solicitor. You can negotiate the price if you want or you stick to your guns.
Your point about only selling once is exactly why you need to maximise the value by splitting it up. Many agents have their favourites and will get brown envelopes after a successful deal.

A very interesting post. I have often wondered if there are any brown envelopes involved.Price setting is not all that transparent either in my opinion.Most of the farms on the market at the moment seem to be hugely overpriced.A small number seem to be more realistic.Maybe these are the ones with bank pressure,or forced sale.Land agents will never tell you what farms have actually sold for after completion either,as if it is some very privileged secret.But after 3 months or so,it comes up on the Land registry in any case.

 

[Daniel]

A very interesting post. I have often wondered if there are any brown envelopes involved.Price setting is not all that transparent either in my opinion.Most of the farms on the market at the moment seem to be hugely overpriced.A small number seem to be more realistic.Maybe these are the ones with bank pressure,or forced sale.Land agents will never tell you what farms have actually sold for after completion either,as if it is some very privileged secret.But after 3 months or so,it comes up on the Land registry in any case.

How do you find out what a piece of land sold for, do you have to pay a fee?

 

[Pilatus]

Go to lan

How do you find out what a piece of land sold for, do you have to pay a fee?

Google. Government Land Registry.
You can find out how much land sold for, I think now for free, otherwise a small
charge.
A good way to find out how much land really sold for rather than listening to country bumpkin, unreliable bush telegraph.

 

[Will Blackburn]

Go to lan

Google. Government Land Registry.
You can find out how much land sold for, I think now for free, otherwise a small
charge.
A good way to find out how much land really sold for rather than listening to country bumpkin, unreliable bush telegraph.

About £2 + vat

 

[Sambo]

Check out this land on Rightmove!

Land for sale in Burton-on-Trent, Derbyshire £700,000. Marketed by Fisher German, Ashby de la Zouch

www.rightmove.co.uk

Sounds like you would struggle to farm any of this ground if you were to buy it....

 

[Highland Mule]

Check out this land on Rightmove!

Land for sale in Burton-on-Trent, Derbyshire £700,000. Marketed by Fisher German, Ashby de la Zouch

www.rightmove.co.uk

Sounds like you would struggle to farm any of this ground if you were to buy it....

Or you could get almost ten times the acre value by buying a croft in Caithness.

 

[7610 super q]

Check out this land on Rightmove!

Land for sale in Burton-on-Trent, Derbyshire £700,000. Marketed by Fisher German, Ashby de la Zouch

www.rightmove.co.uk

Sounds like you would struggle to farm any of this ground if you were to buy it....

" With an annual rent of one pepper corn " WTF ?

 

[teslacoils]

" With an annual rent of one pepper corn " WTF ?

Looks like a solicitor / agents dream.