Rental Land Value - Devon

Discussion in 'Tenant Farming, Subsidies, BPS & Legal Issues' started by Steve M, May 15, 2017.

  1. Steve M

    Steve M New Member

    Hi folks,

    Needing some advice. I have been in negotiations to take on my first tenancy. I have been farming this land for 9 months on a pay per ewe basis but the current tenant has given it up.

    After asking for plans and acreages to be given, the agent has come back saying it is 38.44 acres. This is fine for me being a new entrant.

    The previous tenant paid £3,600 per year, but he was never told or never asked what the exact acreage was. If he knew he was paying £93.65 per acre he may not have stayed as long as he did.

    Now, to give more information. Nearly all farms around are in dairy or maize and the landlady doesn't like arable or cows so this is why I have a chance with my sheep.

    The land is South facing but the grass is nothing more than meadow grass. Fields of sweet vernal, stingers and all too little clover.

    The fencing is, on the other hand, immaculate. I have never seen a farm fenced so well.

    So, how much per acre is this worth? My budgets can go to £88 per acre but I honestly don't think it's worth more than £85. I would guesstimate land around here is worth £80 per acre. She is reluctant to come down from £3,600 and I don't want to lose out and have to find other land/sell my flock.

    The land is in East Devon.

    Tough decisions ahead. Advice on valuations welcome!
     
  2. Badshot

    Badshot Member

    Location:
    Kent
  3. You don't need advice , you have already worked it out.
     
    Courier and chipchap like this.
  4. An Gof

    An Gof Member

    Location:
    Cornwall
    You're only £217.28 apart if you go to your £88 per acre. Are you really going to lose a block of "immaculately" fenced land that you already know for £217?
    Get on and get it signed up, if you lose it you'll never stop thinking about it.
     
    Steevo, fieldfarmer, Courier and 2 others like this.
  5. fixersteve26

    fixersteve26 Member

    Would have said it was worth £90 - £100 being fenced. depending on FBT Length you can improve grass as cash allows
     
  6. fixersteve26

    fixersteve26 Member

    Mains water??
     
  7. Formatted

    Formatted Member

    Location:
    Wiltshire
    Who gets BPS? Length of tenancy? Is it watered, who pays for it if so? Access? Pain in the arse factor with landlord being picky?

    Sounds like a done deal, get it signed
     
  8. Steve M

    Steve M New Member

    No BPS attached to it.

    It's a 7 year FBT with annual break clauses. Good road access and all fields have troughs fed by mains or stream water. Not sure who pays water though...

    Question;

    Am thinking of accepting the £3,600. Would that mean the rent is fixed at that amount for the 7 years or could rent increases still occur?

    If she can still increase rent then I may ask for a clause to fix rent for 3 years.

    What do people think? And thanks for the replies so far. Very helpful!
     
    Last edited: May 15, 2017
  9. Formatted

    Formatted Member

    Location:
    Wiltshire
    I'm not really sure how you have an FBT and not get the BPS. Since a tenancy is exclusive access and right over the land, a which is a requirement for claiming payment.

    What does it say in the paper work?
     
    Manney and Thick Farmer like this.
  10. Courier

    Courier Member

    If you are still up for a barter ask for 10 years instead of 7. Tell her it gives you more chance to get your money back from the improvements to the sward . What's the PH ?
     
    Last edited: May 16, 2017
    ThatsSomeSheep likes this.
  11. hindmaist

    hindmaist Member

    A 7 year FBT with an annual break clause? Does this mean you have to vacate the land for a few weeks each year,or does it mean the rent and conditions will be reviewed each year?
     
  12. D14

    D14 Member

    That is good value. I know a few friends who let grassland annually for £150/acre and the owner claims the BPS on top not the person farming the land.

    The landlady in this case is not going to take a reduction just because its you, so you'll have to pay the £3600 if you want it. If not somebody else will.
     
    Courier, Grouse and hally like this.
  13. Grouse

    Grouse Member

    Like it or not D14 above is right
     
  14. Steevo

    Steevo Member

    Location:
    Gloucestershire
    Rent the land, buy entitlements, farm it almost free. Am I missing something?

    BPS enables many to rent FOC that I know.
     
  15. cattleman123

    cattleman123 Member

    Location:
    devon
    Annual break clauses....so really you only have it for 2 years
     
  16. hally

    hally Member

    Location:
    cumbria
    Surely if you have an annual,break clause what makes it any more secure than a grazing licence?
     
  17. Grouse

    Grouse Member

    It doesn't, unless the annual break is just a week off unoccupied once every 12 months and the agreement is for the full term of 7 years. Thus you have a 7 year agreement that doesn't create a tenancy
     
    hally likes this.
  18. Courier

    Courier Member

    It's great that you know what your next few years profits ( within £20 per acre) are going to be so that you can say that £85 is the rent you can justify paying but there will always be someone out there who is prepared to offer considerably more so that he/she can "spread their existing overheads ".

    If paying what the landlady is offering doesn't work for you then walk away but you may be a long time getting another chance.
     
    Last edited: May 20, 2017
  19. Steve M

    Steve M New Member

    Thanks for all the replies. Was great to hear all the opinions.

    To close off, I accepted the £3,600 offer and should sign later this week.

    Given the lands proximity to both the farm I work at and home, not to mention the difficulty in getting land in the area made it worth that price to me.

    Although nervous, am looking forward to the challenge ahead! Here goes.
     
    Flat 10, An Gof, Henarar and 2 others like this.
  20. glasshouse

    glasshouse Member

    Location:
    lothians
    who claims bps?
     

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