Rents on farm land

[nelly55]

A farm has cone up for rent,grassland and arable about 300 acres each plus house and buildings on 15 year fbt with a rent review at 3 years.With the uncertainty of brexit ideas on a postcard what someone will pay.

 

[Will Blackburn]

£270/acre

 

[had e nuff]

Too much

 

[Steevo]

As above, in excess of £250 I'm sure.

It's a wonder they are letting the house with it as well. I'd expect that to be let separately given it'll likely go to one of the local big boys.

 

[unlacedgecko]

As above, in excess of £250 I'm sure.

It's a wonder they are letting the house with it as well. I'd expect that to be let separately given it'll likely go to one of the local big boys.

That seems a hell of a lot of money.

£100/acre for the land seems appropriate.
That means the house and buildings are costing £45,000 pa. Which seems mental...

 

[pappuller]

£270/acre

Some Duchy of Lancaster land approx 150 acres not too far from u or I made that 18 mnths ago bare land needing some serious tidying up. Small farm not far away made in excess of 300

 

[pappuller]

That seems a hell of a lot of money.

£100/acre for the land seems appropriate.
That means the house and buildings are costing £45,000 pa. Which seems mental...

You are obviously not in supermarket milk contract country ?

 

[dinderleat]

£100 acre @ 600 acres= £60000
A house at £9600 a year
Buildings say £2000

Total £71600 = £138 per acre.

 

[unlacedgecko]

You are obviously not in supermarket milk contract country ?

I am. I just struggle to see how people could make money paying those sort of figures.

 

[colhonk]

1/2 tonne of wheat an acre.

 

[Wombat]

If there is a dairy farmer around at least £250

 

[Steevo]

I am. I just struggle to see how people could make money paying those sort of figures.

That is another matter entirely. Often the people that bid rents like that aren't so fussed about profitability it would seem.

 

[pappuller]

I am. I just struggle to see how people could make money paying those sort of figures.

Quite agree, bonkers money round here, much rather a little of my own than alot of someone else's

 

[oldoaktree]

As above, in excess of £250 I'm sure.

It's a wonder they are letting the house with it as well. I'd expect that to be let separately given it'll likely go to one of the local big boys.

Houses often have to stay with the farm for Agriculture relief in IHT . Not always.

 

[Stewartry hill]

If you want it you will have to be near the 250 mark because someone else will

 

[icanshootwell]

If you want it you will have to be near the 250 mark because someone else will

I know what you mean, a spud farmer near me outbid several large farms that were 25 miles away from his farm, the spud grower paid something like 280/a. to grow seed. i think it was a 100a block, so you would grow 25 30 a for the seed, the rest wheat and OSR. crazy busy fools spring to mind

 

[Will Blackburn]

£70 for the house, £80 for the BPS, £100 for the land, doesn't sound much does it?

 

[pine_guy]

Will you get the £80 BPS on three years time?

 

[rusty]

£70 * 600 acres is £42,000/year for the house!

I think before taking on a farm like this you need to have in place a mechanism for a rent reduction to take into account the reduction/ removal of BPS.

 

[Steevo]

£70 * 600 acres is £42,000/year for the house!

I think before taking on a farm like this you need to have in place a mechanism for a rent reduction to take into account the reduction/ removal of BPS.

Agreed. But you can bet your bottom dollar that the person whose proposal is accepted will not have mentioned anything about this as it might jeopardise their chances at farming a few more acres.