Reduction rates for BPS 2021

[livestock 1]

why wouldn’t I get far in a panel van? Do you not have roads?

my grass keep rates would be exactly the same, as they’re at a level which enables me to make a profit.

You have great ideas.

 

[unlacedgecko]

I would love to tell you are correct, but you aren’t.
Are you seriously telling me that for example grass keep would be where it is without bps?
Or farms to rent a better example. One price with bps another without it’s that simple.
Just because it’s happening doesn’t mean I’m drawn into that way of thinking. I’m just saying how it is.

I keep seeing NFU etc in the media saying that many farms net profit is equal to their sub check. So post subs, farming are going to break even AND pay more for rent?

 

[neilo]

why wouldn’t I get far in a panel van? Do you not have roads?

my grass keep rates would be exactly the same, as they’re at a level which enables me to make a profit.

Are your rates not paid by sheep farmers that have (almost all) received BPS, who mostly wouldn’t be able to run those enterprises profitably without the benefit of that input?
Your land is rented from farmers who have also claimed, and stay in business by virtue of, BPS.

You might not claim it yourself, but you are providing a service between two businesses that each stay in operation because they do receive it, and choose to pass some of the benefit on to you.

Fair play to you for making a living from doing so, but you are most definitely helped by that money being input by the government currently.

 

[livestock 1]

I keep seeing NFU etc in the media saying that many farms net profit is equal to their sub check. So post subs, farming are going to break even AND pay more for rent?

Nope

 

[ollie989898]

I would love to tell you are correct, but you aren’t.
Are you seriously telling me that for example grass keep would be where it is without bps?
Or farms to rent a better example. One price with bps another without it’s that simple.
Just because it’s happening doesn’t mean I’m drawn into that way of thinking. I’m just saying how it is.

What odds does the BPS make?

If BPS goes for people who are already offering grass keep, then the people who are in the market for it will either pay what the person offering it wants or they won't. If they can't see money at the end of the rainbow they won't do it. Is what I am saying that difficult to comprehend? What odds does it make to the person running sheep over your land whether you get paid BPS or not- his business model is the same. If you try to milk him he ain't gonna do it.

 

[unlacedgecko]

Are your rates not paid by sheep farmers that have (almost all) received BPS, who mostly wouldn’t be able to run those enterprises profitably without the benefit of that input?
Your land is rented from farmers who have also claimed, and stay in business by virtue of, BPS.

You might not claim it yourself, but you are providing a service between two businesses that each stay in operation because they do receive it, and choose to pass some of the benefit on to you.

Fair play to you for making a living from doing so, but you are most definitely helped by that money being input by the government currently.

you are entirely correct. I somewhat saw the writing on the wall several years ago. This is why I’m changing the core business. Watch this space for details.

 

[ollie989898]

Nope

We agree on something then...

 

[livestock 1]

What odds does the BPS make?

If BPS goes for people who are already offering grass keep, then the people who are in the market for it will either pay what the person offering it wants or they won't. If they can't see money at the end of the rainbow they won't do it. Is what I am saying that difficult to comprehend? What odds does it make to the person running sheep over your land whether you get paid BPS or not- his business model is the same. If you try to milk him he ain't gonna do it.

Unless sheep stay where they are price wise there won’t be enough sheep to need much grass keep. Hill farms will cut numbers no doubt. They already have been for years now and that’s with bps.
I don’t know why you can’t work this out for yourself!

 

[Tubbylew]

The truth of the matter is, love it or loath it subsidys of one sort or another have been a massive part of the rural economy for 2 or so generations, i remember being told by my grandfather, that when he started, a well repected farmer locally told him "the subsidy will be the ruin of the farmer", I guess it was a nice ride while it lasted, eh!

 

[pellow]

If the golden handshake isn’t more than the combined payment for the remaining years of the scheme no one will take it, especially with tax implications. I can’t think of any codgers down here that would retire for a pay off, they aren’t in it for the money, it’s the control they want

 

[jendan]

If the golden handshake isn’t more than the combined payment for the remaining years of the scheme no one will take it, especially with tax implications. I can’t think of any codgers down here that would retire for a pay off, they aren’t in it for the money, it’s the control they want

Then both you and them cant do sums.

 

[Mixedupfarmer]

If the golden handshake isn’t more than the combined payment for the remaining years of the scheme no one will take it, especially with tax implications. I can’t think of any codgers down here that would retire for a pay off, they aren’t in it for the money, it’s the control they want

May be some tenant farmers (especially FBT) cut and run?

 

[Derrick Hughes]

If rural life is anything too do with rural economy then its been dieing for 30 years , some would agrue that subs speeded that up,

 

[pellow]

Then both you and them cant do sums.

What? that a large pay out will incite a large tax bill instead of kicking the van down the road

 

[livestock 1]

Farms differ massively in their capabilities.
Geogaphical location may make the difference between winners and loosers

 

[Hindsight]

If the golden handshake isn’t more than the combined payment for the remaining years of the scheme no one will take it, especially with tax implications. I can’t think of any codgers down here that would retire for a pay off, they aren’t in it for the money, it’s the control they want

It looks from RPA data that half the claimants receive less than £10k a year. As the pay off is unlikely to be an option for a couple of years - lets say for arguments sake 2022 then these folk will not have a huge amount to roll up into a one off payment.

 

[Hindsight]

What? that a large pay out will incite a large tax bill instead of kicking the van down the road

For the majority it is likely to be a relatively modest sum. Although this may not seem the case to a single mum with two young children eking a living working as a social care assistant renting from a private landlord who happens to be a farmer in a medium northern town.

 

[Henarar]

If the golden handshake isn’t more than the combined payment for the remaining years of the scheme no one will take it, especially with tax implications. I can’t think of any codgers down here that would retire for a pay off, they aren’t in it for the money, it’s the control they want

can't it be averaged ?

 

[Hilly]

For the majority it is likely to be a relatively modest sum. Although this may not seem the case to a single mum with two young children eking a living working as a social care assistant renting from a private landlord who happens to be a farmer in a medium northern town.

What is a “Medium Northern town” ?

 

[livestock 1]

Something that is ironic is that banks have been pushing towards the big pig and chicken outfits. They like the constant cash flow it’s easier for them to understand. Many small family farms do less of their own thing and do work for the big pig outfits. Factory farming has and still is frowned upon by many but the family farm will be taking a hit by this new % reduction and be pushed towards working for the bigger factory farms.