Rental figures for 5 acres

[Farmer_England]

Hi folks,
Hope everyone had a Merry Christmas and wishing everyone a Happy New Year.

I have been asked to find the going rate for rental figures for 5 acres, grade 2, flat, arable land, bare (stubble) with road frontage (access). BPS + Environmental schemes NOT included. (South East England).

I've looked on .GOV & FWI and 2018 figures are around £77/acre (£190/ha) FAT and £63/acre (£155/ha) on Seasonal agreements & finally £84/acre (£207.50 / ha) on FBT.

Is there much change from 2 years ago?

Many thanks.

 

[Werzle]

Whats the five acres wanted for ? Thats the first question people will ask because its odd for a farmer to ask for such a small arable acreage with road frontage etc. Its sounds dubious

 

[Farmer_England]

Whats the five acres wanted for ? Thats the first question people will ask because its odd for a farmer to ask for such a small arable acreage with road frontage etc. Its sounds dubious

Didn't mean for the perfectly harmless question to sound dubious at all.

We rent out a 5 acre plot which is away from the home farm and rent review is up for 'renewal' & not sure whether to take it back in house or if the tenant will agree to the higher rent increase (last review was a decade ago when the older generation was looking after the price).

Thanks

 

[Still Farming]

What are you paying now and what will you be happy with after review???

 

[Werzle]

Your rent figures seem very low, i would thinking £150-200/ac if i was the tenant or vendor

 

[Werzle]

What are you paying now and what will you be happy with after review???

Hes letting it

 

[Steevo]

Your rent figures seem very low, i would thinking £150-200/ac if i was the tenant or vendor

He is talking ex-BPS so that would bring it up to around those figures you quote....comparable with larger scale FBTs.

A 5ac patch is likely limited to only a few potential tenants i.e. those that farm land next door to it. The profit potential from 5ac arable is pretty low and wouldn't stand much travelling.

That said, add a stable block and let the lot out as a whole as a livery yard for a tenant to manage themselves and you could probably add a nought on the end without too much issue.

 

[Zan]

For such a small area I’d be looking for £3-400 per acre for the hassle?

 

[farmerm]

letting it on what basis? do you have the right to "take it back in house"?

 

[farmerm]

He is talking ex-BPS so that would bring it up to around those figures you quote....comparable with larger scale FBTs.

A 5ac patch is likely limited to only a few potential tenants i.e. those that farm land next door to it. The profit potential from 5ac arable is pretty low and wouldn't stand much travelling.

That said, add a stable block and let the lot out as a whole as a livery yard for a tenant to manage themselves and you could probably add a nought on the end without too much issue.

Though with a stable block there is no BPS (whilst it lasts) and in the event of a death there will be no APR relief, possibly a very important consideration depending on the ownership arrangements ....

 

[Still Farming]

Hes letting it

Asked to find out?
By who?
If grade 2 soil,skies the limit if potatoe or specialists salad grower wants it by a road?

 

[ffukedfarmer]

How many people would be interested in 5 acres for combinables unless it adjoined other ground and could be accessed without taking off the header?

 

[Still Farming]

How many people would be interested in 5 acres for combinables unless it adjoined other ground and could be accessed without taking off the header?

Salad crops different story possibly?

 

[Farmer_England]

Asked to find out?
By who?
If grade 2 soil,skies the limit if potatoe or specialists salad grower wants it by a road?

By my father who doesn't do technology, so I have been asked to find out the current rental prices. Just combinable crops.

 

[Farmer_England]

letting it on what basis? do you have the right to "take it back in house"?

Your rent figures seem very low, i would thinking £150-200/ac if i was the tenant or vendor

I got them off government website (2018) and FWI article which was updated March 2020. Just wanted to know other farmers either owners or tenants and if they have seen in actual terms an increase in rent

 

[Farmer_England]

What are you paying now and what will you be happy with after review???

If I was the tenant I'd be happy with a rent decrease, but that is not the case

 

[Flat 10]

When you say excluding BPS you mean you are claiming the BPS? Or you are not providing entitlements? If the tenant is looking after it, ie not too much BG, hedges cut etc I think £400pa is ample if you are claiming BPS.

 

[Werzle]

He is talking ex-BPS so that would bring it up to around those figures you quote....comparable with larger scale FBTs.

A 5ac patch is likely limited to only a few potential tenants i.e. those that farm land next door to it. The profit potential from 5ac arable is pretty low and wouldn't stand much travelling.

That said, add a stable block and let the lot out as a whole as a livery yard for a tenant to manage themselves and you could probably add a nought on the end without too much issue.

I was thinking my figures without sfp , more if the sfp was included.

 

[Still Farming]

If I was the tenant I'd be happy with a rent decrease, but that is not the case

So your old man wants you to find out so to push rent up on you
What does his current land agent say ,that does his current work???

 

[Kidds]

£80-100 per acre is reasonable.