Rental value of sandy land with water?

[NLF]

Can anyone give me a rough idea of the demand and likely rent for sandy land with water capable of growing spuds, veggies etc in the Brecklands or similar location? Also what would a typical rotation look like I.e. how many years of poor cereal break crops do you need for one year of veggies or spuds and what would a grower pay for a cropping license for a year of spuds or veggies? Is water sold on top of that and if so what is it worth (using all their kit to pump and irrigate)?

Thanks.

 

[Spencer]

Same question but for Lancashire?

 

[warksfarmer]

Can anyone give me a rough idea of the demand and likely rent for sandy land with water capable of growing spuds, veggies etc in the Brecklands or similar location? Also what would a typical rotation look like I.e. how many years of poor cereal break crops do you need for one year of veggies or spuds and what would a grower pay for a cropping license for a year of spuds or veggies? Is water sold on top of that and if so what is it worth (using all their kit to pump and irrigate)?

Thanks.

If its virgin potato ground with water then you’ll be at £600/ac the first year. After that potatoes once every 6 years unless you want soil bourne disease build up. With water you should be around £400/ac.

Other roots then carrots/parsnips pay a but more than potatoes (£450-500/ac) but they are in the ground longer. You’ll want a late lifting bonus typically £25/ac/week. You’ll want another bonus if they want to straw them down over winter as well £50-£100/ac. Watch waste plastic levels and if they do straw them down then you should supply the straw (at market value) so you arent importing grass weeds. And you want to make sure they leave you with a level straw free seedbed. They generally use a spader then plough. If they want to straw over winter and you dupply the straw, then theres some late lifting income you can get upto £1000/acre income from it before your costs of straw supply and a reduced yield of the following crop which today should be AHL2 in SFI as that would work well.

 

[NLF]

If its virgin potato ground with water then you’ll be at £600/ac the first year. After that potatoes once every 6 years unless you want soil bourne disease build up. With water you should be around £400/ac.

Other roots then carrots/parsnips pay a but more than potatoes (£450-500/ac) but they are in the ground longer. You’ll want a late lifting bonus typically £25/ac/week. You’ll want another bonus if they want to straw them down over winter as well £50-£100/ac. Watch waste plastic levels and if they do straw them down then you should supply the straw (at market value) so you arent importing grass weeds. And you want to make sure they leave you with a level straw free seedbed. They generally use a spader then plough. If they want to straw over winter and you dupply the straw, then theres some late lifting income you can get upto £1000/acre income from it before your costs of straw supply and a reduced yield of the following crop which today should be AHL2 in SFI as that would work well.

Thanks, that's very useful. Just to clarify, how frequently could you grow a high value crop? Could you do say three in a six year rotation I.e. potatoes, break, veggies, break, veggies, break, back to potatoes etc?

I'm just trying to work out the average rental or profit over the entire rotation.

 

[warksfarmer]

Thanks, that's very useful. Just to clarify, how frequently could you grow a high value crop? Could you do say three in a six year rotation I.e. potatoes, break, veggies, break, veggies, break, back to potatoes etc?

I'm just trying to work out the average rental or profit over the entire rotation.

You could do that but eventually they wont rent it off you because of soil diseases so you would be reducing the long term income.

You might (and it is a might) get away with roots, break, break, roots, break, break ……

But to make that work the break ought to be a sfi mix like ahl2 which pays £853/ha.

 

[essex man]

Irrigate your cereal crops too and you will find them profitable.
Who would be doing the irrigating, providing the equipment, moving it?
You can do spuds, cereal, onions, two cereals , then spuds again.

 

[NLF]

Thanks for your comments.

I've never grown root crops (ex Sugar beet) and I don't really want to get into that. I don't have the expertise or equipment. It looks like a high risk / rewards business.

I was looking at some light land for sale (with irrigation) and I wondered how the returns stacked up versus my existing heavier land. Overall, it sounds like the economics aren't that much better. I could let it for say £500 for one year in four, but then I have to put up with some poor break crops (only sufficient water to irrigate 25% of the land) or fall back on SFI (for as long as that lasts). Either way, the returns don't appear to justify the higher asking price as far as I can see.

 

[essex man]

Thanks for your comments.

I've never grown root crops (ex Sugar beet) and I don't really want to get into that. I don't have the expertise or equipment. It looks like a high risk / rewards business.

I was looking at some light land for sale (with irrigation) and I wondered how the returns stacked up versus my existing heavier land. Overall, it sounds like the economics aren't that much better. I could let it for say £500 for one year in four, but then I have to put up with some poor break crops (only sufficient water to irrigate 25% of the land) or fall back on SFI (for as long as that lasts). Either way, the returns don't appear to justify the higher asking price as far as I can see.

It's not really "land with irrigation" unless you can irrigate it all , as far as i'm concerned.
Possible to let every other year if you have the right mix of tenant cropping.
Not if you at 25% irrigatable tho.
Depending on situation you may be able to add water resource.

 

[deleted user 837354]

Depends on the local demand/'market' and location. For spuds I should think it would be well sought after.

 

[NLF]

It's not really "land with irrigation" unless you can irrigate it all , as far as i'm concerned.
Possible to let every other year if you have the right mix of tenant cropping.
Not if you at 25% irrigatable tho.
Depending on situation you may be able to add water resource.

I see your point. Without more water its really half sand with irrigation and half sand without irrigation which is a very different prospect.

So with enough water it would be £500 rent one year followed by £200 from a break or stewardship the next, an average return of 350 per year which does justify a reasonable premium over heavy arable land. What it probably needs is a winter fill reservoir. That definitely takes me beyond my area of expertise.

 

[essex man]

I see your point. Without more water its really half sand with irrigation and half sand without irrigation which is a very different prospect.

So with enough water it would be £500 rent one year followed by £200 from a break or stewardship the next, an average return of 350 per year which does justify a reasonable premium over heavy arable land. What it probably needs is a winter fill reservoir. That definitely takes me beyond my area of expertise.

I rent out land every other year, grow wheat in between with irrigation, plus mix in a bit of sugarbeet
Rent plus irrigation equals £600 -1000 per acre.