At that price much better to lease land for private allotments,get to sell them your muck also.some right handy lads end up as plot holders.
basically every profession you can think of is now into allotment gardening.
Pellow.What is a good rent now? was phoned this week and offered around £1000/acre but was told at a meeting should be aiming for £2000/acre
Told last week the plug been pulled as we reach grid parity by 2016. At the same time the offer of £800/ac was going to be reduced. I wanted double that anyway to go ahead with a 33KVA size operation which has been on and off the cards for 18 months.
If you think about it your locking in for 25 years. In that time the company you originally sign up with, will probably be sold 2 or 3 times so you end up with people owning it you have no idea who they are. This worries me when it comes to removing them at the 25 year lease end. Also the prices are not enough which I know index linking helps but its linked to the RPI and it should be linked to that as well as food/land prices.
4t of wheat at £250/t is not far off profit wise as the £800/ac offer above. Then take into account no SFP and potential inheritance tax issues it really is not worth it is it!
You need to be thinking along the lines of below because of the 25yr timescale:
5t/ac of wheat @ £400/t
Increase in land rental value
Increase in land value
Loss of inheritance tax ability
Potential for rates after its removed
Cost of removing it
All that points towards £5,000/acre rental as an average over the 25 years.
Will,
To me its the farmer taking all the risk though:
1. Land out of production for 25 years
2. Assuming somebody will remove the panels after 25 years
3. Loosing subsidy on the land
4. Taking inheritance tax risks
5. Potentially loosing out on higher commodity prices
£800/ac on 30 acres is £25,000/year. After tax, what about £20,000?
Is £20,000/year worth the risk of all the above?
Told last week the plug been pulled as we reach grid parity by 2016. At the same time the offer of £800/ac was going to be reduced. I wanted double that anyway to go ahead with a 33KVA size operation which has been on and off the cards for 18 months.
If you think about it your locking in for 25 years. In that time the company you originally sign up with, will probably be sold 2 or 3 times so you end up with people owning it you have no idea who they are. This worries me when it comes to removing them at the 25 year lease end. Also the prices are not enough which I know index linking helps but its linked to the RPI and it should be linked to that as well as food/land prices.
4t of wheat at £250/t is not far off profit wise as the £800/ac offer above. Then take into account no SFP and potential inheritance tax issues it really is not worth it is it!
You need to be thinking along the lines of below because of the 25yr timescale:
5t/ac of wheat @ £400/t
Increase in land rental value
Increase in land value
Loss of inheritance tax ability
Potential for rates after its removed
Cost of removing it
All that points towards £5,000/acre rental as an average over the 25 years.
I hope that I can do 5t/acre at £400 t. The rest of the farm will be doing rather nicely thankyou.
If the price of land goes up then it will go up on all the farm including the solar park.
Why would you have rates when it is removed?
The cost of removing it should be covered by a bond or the scrap value of all that metal.
I am more worried that it may be classed as permanent pasture and therefore not ploughable for crops again. You can cover the IHT with life insurance. Are we sure that there will be APR in 25yrs time anyway. If Miliband gets in we're probably all stuffed anyway with his marxist upbringing.