Rent
- Thread starter Sleepeasy
- Start date
- Location
- South Wales UK
Mega money if spud ground then?
- Location
- South lincs
Good land round here is 300+/ac
- Location
- Lincolnshire
SFi income surely puts a bottom line in rents now?
Which option you referring to, and how much net margin/hectare after establishment & management costs?
Not many landlords going to take land back in hand purely to put it into an SFI option... Or am I wrong?
- Location
- South Wales UK
Always someone to out bid you.
Flatland guy
Member
- Location
- Lincolnshire
Just do your sums and tender at a level comfortable for your business.
Ask plenty of questions regarding SFI/ carbon etc to see what can/cannot do.
Or is it a vague question where the land is most probably agreed but someone just wants to ensure rent is at market level etc.
I wouldn’t say mega money just a better return on investment.
For argument’s sake let’s say land is 10K an acre £200/acre is only 2% return! Not exactly dreamland.
Punch
Member
- Location
- Warwickshire
Plenty are. That and for BNG
Punch
Member
- Location
- Warwickshire
Where is this land for £10k. Everything around here seems £15k upwards.
BNG is different and involves locking in options for 30 years.Plenty are. That and for BNG
SFI might give the landlord the nudge, but they'll still have to farm for a profit, unless it's something like 3 year legume fallow?
Flatland guy
Member
- Location
- Lincolnshire
Lincs, prices in Lincs seem to be stuck in the 10K bracket-ish. Was told higher in the midlands but cannot explain the difference not sure whether there is better return on let yards/buildings for industrial compared to Lincs don't know. But on paper for the quality of land something doesn't add up!
Punch
Member
- Location
- Warwickshire
Been to two events recently and plenty saying landlords on the Cotswolds going to 100% environmental options. Winter bird cover to improve shooting, wild flowers for others & herbal leys that maybe available on annual grazing licences. I’ve heard FBT’s getting notice to be taken back in hand with aim of SFI or mid tier plus!
As @teslacoils said its putting a base in market for the poorest land.
As @teslacoils said its putting a base in market for the poorest land.
We are in such volatile times all you can do is do your own budget and work a figure out that you are happy to bid.Should have said this is in Lincolnshire- but I won’t be bidding £300 acre
If your calculator actually works it is unlikely you will be top bidder!
Local large contract farmer was saying he had quite a few people saying they are thinking of putting quite a bit of land into SFI. He’s having to explain that if too many do that for 3 years, he won’t have the men or machines left to take it all back on if they all want it farmed again in 3 years time. SFI could end up quite a blood bath as I doubt any of the individual farms they cover would be able to re-equip themselves (or have the will to do so) at the end of SFI if people go into it without a realistic exit plan.
- Location
- Lincolnshire
At the rate ag machinery inflation is going, I'd not be able to replace a tractor in three years anyway. It's always possible to re-equip. You just go to the shop. Just the size of chequebook that differs.
It's the nature of a contractor not to have secure land, and the nature of landowner to want to maximise the income. But if you put SFi income into a CFA spreadsheet it comes out quite well.
- Location
- Lincolnshire
Probably won't be getting it then if it will grow potatoes.Should have said this is in Lincolnshire- but I won’t be bidding £300 acre
They have spent decades building the business up. Sure they can buy a couple of big toppers and sit people on them.
But what about combine capacity and the skilled drivers, they won’t just hang around for 3 years? Etc.
yes it’s always possible to re equip but whether it would be financially viable is a very different matter.