Rent Per acre without BPS

[Cowcorn]

Chatting to my agent the other day and he reckoned £20/acre when the topic came up.

Book a couple of thousand acres with him for me will you . Then i can rent my place out to one of the local dairy expanders for 350 euro an acre and skip over the pond to realise my ambition of becoming a real barley baron!!!!
On a more serious note i have been approached by a large dairy operator who wants to rent a15 acre field i own 6 miles from the yard, 350 has been offered . The field in question would allow him acesss to another 50 acre block he has leased. My good angel tells me take the money and invest it in something profitable, but bad angel says fucck the arrogant fuccker your father will be back if he thought you were renting out land, and anyway you know you want to drill spring rape or fodder beet in the field and then wheat its what you enjoy. Havent given him an answer yet, but its looking like spring rape!!

 

[Clive]

What do you think people would be willing to pay to rent bare arable land with no bps or countryside stewardship. ( landlord keeping both) Am playing with figures and was just wandering especially With this brexit thingy turning into an utter shambles and the threat of a Corbyn lead government getter closer by the day

Current rent - bps = new rent

It’s not really rocket science, howver I suspect it won’t work quite like that as us farmers do love to cut each other’s throats !

 

[Tarw Coch]

That’s the trouble how can bps go and ad sub still remain it’ll skew the figures

If AD is going to be far more profitable than food production on rented land then surely there will be a rise in AD.

 

[jack6480]

I don’t think rents will go down, if no one will pay then I think they’ll either just put trees on it or leave it.

 

[Farma Parma]

Current rent - bps = new rent

It’s not really rocket science, howver I suspect it won’t work quite like that as us farmers do love to cut each other’s throats !

that i'll mean there paying me to farm it.... bring it on...

 

[solo]

Rents prior to direct payments were around £70-80/acre here so I would expect if direct payments are removed then it will settle somewhere similar. The main change since those days has been the demise of the sugar beet industry and a consolidation of the potato growers. Field veg has definitely increased and I guess that market will keep rents up around here.

 

[onthehoof]

Rents prior to direct payments were around £70-80/acre here so I would expect if direct payments are removed then it will settle somewhere similar. The main change since those days has been the demise of the sugar beet industry and a consolidation of the potato growers. Field veg has definitely increased and I guess that market will keep rents up around here.

But there was IACS then don’t think that will be coming back

 

[Warp Land Farmer]

I can’t imagin many land owners accepting much less than £70/£80 an acre, they will consider it the tenants problem I’m guessing.

 

[Tarw Coch]

But there was IACS then don’t think that will be coming back

He said direct payments, I would have thought IACS were direct payments, so I presume he meant before that.
There was of course intervention buying which was a subsidy of sorts even if not payed to the farmer.

 

[sodbuster]

Round here straw sales more than cover the rent!

 

[Brisel]

I don’t think rents will go down, if no one will pay then I think they’ll either just put trees on it or leave it.

Planting trees instantly devalues farm land & in England the grants for doing so aren't great. This isn't Scotland. As for leaving it, the place will just revert to scrub with no agricultural value. Better a smaller rent to keep the land in good heart and attract the remains of the BPS scheme than zero rent and a declining value. I fail to see any truth in your post.

 

[Billboy1]

On a aha tenancy I would have thought that rent would need to reduce by 1/2 of bps in round figures.
So a traditional 2000a estate could be £80000 out of pocket in a few years .
Is this why some crown land has been sold ahead of the game ?

 

[Brisel]

The Crown Estate has a longer term strategy to sell bits of standard farm land and invest in land with extra potential, mainly development. I dare say they've had high level discussions about a lower rental yield on their still substantial farmland portfolio post BPS.

https://www.fwi.co.uk/international...e-buys-manchester-university-land-in-35m-deal

 

[ThatsSomeSheep]

Book a couple of thousand acres with him for me will you . Then i can rent my place out to one of the local dairy expanders for 350 euro an acre and skip over the pond to realise my ambition of becoming a real barley baron!!!!
On a more serious note i have been approached by a large dairy operator who wants to rent a15 acre field i own 6 miles from the yard, 350 has been offered . The field in question would allow him acesss to another 50 acre block he has leased. My good angel tells me take the money and invest it in something profitable, but bad angel says fucck the arrogant fuccker your father will be back if he thought you were renting out land, and anyway you know you want to drill spring rape or fodder beet in the field and then wheat its what you enjoy. Havent given him an answer yet, but its looking like spring rape!!

Take the rent.

Life’s too short!

TSS

 

[Hilly]

£0 for cereals on 3-3.5 ton land

Is this true ? why do folk bother ? whats the point of growing something for nothing regardless of subs ?

 

[Will K]

I let out about 40 acres of land to a local dairy farmer without bps for forage for nothing in north-east Herefordshire. It is 2 fairly big fields (by Herefordshire standards!) and slightly slopey but easily harvestable - maybe 3.5 t / ac.

From my perspective it saves me the hassle of mowing it etc.

 

[hally]

Chatting to my agent the other day and he reckoned £20/acre when the topic came up.

I hope he comes up here and had a word with land agents around here , poor hill ground along the road( mowable just ) almost £100/acre no payments last year summer only

 

[hally]

On a aha tenancy I would have thought that rent would need to reduce by 1/2 of bps in round figures.
So a traditional 2000a estate could be £80000 out of pocket in a few years .
Is this why some crown land has been sold ahead of the game ?

I remember when area payments come in around, we were told rents would reduce dramatically to virtually zero, in reality rents never altered at all and the land owners pocketed the bps as an extra payment. Smaller livestock holdings have taken a hammering over since

 

[lloyd]

I let out about 40 acres of land to a local dairy farmer without bps for forage for nothing in north-east Herefordshire. It is 2 fairly big fields (by Herefordshire standards!) and slightly slopey but easily harvestable - maybe 3.5 t / ac.

From my perspective it saves me the hassle of mowing it etc.

I hope your not taking this business model to Dragons den.
You know what Deborah Meaden would say!

 

[Will K]

I agree - it is a dreadful use of the £400k or so capital value - but it is inside a ring-fenced farm and so I can't flog it very easily....