Rents

[Cab-over Pete]

There are some people who have not the slightest clue what hardship, or even money worries are. I am lucky enough to include my self there, although we do sail very close to the wind at times, now being one of them.

We keep borrowing right down to virtually zero. I’m probably too cautious but it’s working for me at the present time.

 

[Celt83]

At the end of the day for the collective we are in this industry to make money hence we are a business. There is a nostalgia and a romance that we have in our blood that gets us going through the bad times but essentially we still have a business model that we work to.

Is @Clive wrong in his op? Myself I don't think he's asking for something other industries are being given to them. Why does our industry have to be different? We are classed as key workers so are during the best job we can during these unprecedented time without hesitation, but the value of our products are going in a downward trend. Perhaps gov support is needed rather than landlords?

My beef enterprise is seeing a reduction on farmgate price on a weekly basis yet my production costs are going up, and like someone eluded to earlier I will have to pay my bills and mortgage or there will be serious repercussions.

What is more worrying this pandemic has unearthed how threadbare some of the processors business models are. Take the dairy sector as an example, supermarket shelves are bare yet processors are telling producers to dump milk! You would have thought they would have contingency plans/contacts to fall back on and not put all their eggs in the leisure consumer basket.

Gov aid is doing a lot but not enough in our industry. I do however think they are doing a good job in general with this situation under the amount of pressure they are under, this is my humble opinion.

 

[Hfd Cattle]

On the basis that many commercial property tenants are asking for reductions or deferment of rents should we as farmers be asking landlords for the same ?

Got fed up of reading all the posts ...... we own the farm where we live but rent three others . I would not be going to the landlords for a rent reduction . I'm doing the same level of work on these farms so I expect to pay the same level of rent. I'm sure they would all say .....don't worry if you can't afford the rent then someone else will !!.
The last thing I would want is a deferment of rent ...... it's got to be paid so just pay it !!

 

[Bossfarmer]

no it’s not linked to anything

your getting a rent reduction every year then

 

[Bossfarmer]

you are lucky ! even on our simple arable farm i’ve lost an employee (dad) as he's isolated and not PAYE so can not claim 80% of his wage

getting stuff done (tyres fitted) and parts is already getting tricky, a new 10,000sq ft shed can no longer be built this year etc ... . and this has only just begun

i hear dairy farmers are tipping away milk and prices are down on a lot of meat ... all that defies logic right now though !

why is it not being built? surely the factories that build it will only be shut a month or 2 then back to work

 

[glasshouse]

Landlords shouldn’t be asked to share the pain except in the exceptional circumstances like the Dairy farmers chucking Milk away.
Commercial tenants are a different situation, most had all of their income taken away overnight, you as an Arable farmer are seeing a maybe 25% drop income, did you ask for a rent reduction in 2013 ?? or give your landlord extra rent when you did well in 2015 and the last few years ??
CFA’s are inherently fairer with less risk imho

?????

 

[Properjob]

Another thing about farming during this crisis is that it does give the industry a higher profile and great to not be labelled as climate destroyers for a spell, back British and all the rest. But lets not play this key workers card to heavily, it is embarrassing. I still can't quite believe some the stuff in this thread, not great for PR. We are key for food security etc but we are carrying on as normal, admittedly facing some challenges but nothing too bad. My other half is a front-line consultant at our one large district hospital. Many of her colleges and our friends particularly those in ICU and medical admissions, A&E etc are what I would call KEY workers currently. Someone said to me the other day, things such as the current crisis always bring out the best and worst in people.

 

[glasshouse]

your getting a rent reduction every year then

Wtf!!!!
Rpi doesnt apply to farming

 

[glasshouse]

Another thing about farming during this crisis is that it does give the industry a higher profile and great to not be labelled as climate destroyers for a spell, back British and all the rest. But lets not play this key workers card to heavily, it is embarrassing. I still can't quite believe some the stuff in this thread, not great for PR. We are key for food security etc but we are carrying on as normal, admittedly facing some challenges but nothing too bad. My other half is a front-line consultant at our one large district hospital. Many of her colleges and our friends particularly those in ICU and medical admissions, A&E etc are what I would call KEY workers currently. Someone said to me the other day, things such as the current crisis always bring out the best and worst in people.

Food supply is a key industry
Ships arent sailing
Planes arent flying
Food supplies from abroad are not certain
Milk and eggs short
No flour,
Time for the return of MAF!!

 

[Derrick Hughes]

An interesting aside perhaps . Dad was renting a farm in the 60ts in Cheshire , he moved to West Wales bought a farm 3 times the size on borrowed money and the total interest and repayments worked out cheaper than the rent paid . How would that calculation work out today ?
The rate at the time would have been 4.5 %

 

[Clive]

your getting a rent reduction every year then

until each review or renewal yes

although inflation is a concept rather elusive to Ag outputs !

 

[Clive]

why is it not being built? surely the factories that build it will only be shut a month or 2 then back to work

to late for when I need it

not even certain it’s a good investment now either, need to see just how bad this recession gets first

 

[Clive]

You may well know the answer but i seriously suspect you have no idea why the answer you expect cannot be any other.
Lose the Range Rove , the Cayanne or whatever it is, downsize the house , depend on a foodbank, become unemployed...they try for financial help from a Church.
You will find they still can't help.
But there may well be compassion.

This thread is beyond the pale.

im lucky I have plenty in reserve and am fortunate enough to be a landowner and a farmer

not all farmers are in the same position however

 

[Brisel]

You may well know the answer but i seriously suspect you have no idea why the answer you expect cannot be any other.
Lose the Range Rove , the Cayanne or whatever it is, downsize the house , depend on a foodbank, become unemployed...they try for financial help from a Church.
You will find they still can't help.
But there may well be compassion.

This thread is beyond the pale.

I think Clive might have started the thread to keep his forum traffic up by asking a contentious question! In that respect, he was correct.

 

[Brisel]

As I said earlier, my “landlord” has given me 12 months rent free on 1000 acres ( NO rent ) & had reduced the rent for the last two years, due to seasonal conditions & lack of income

unbelievably generous if you ask me . . .

Very noble of them. I'm taking a wild guess that your "landlord" is an institution run for profit, not that it matters. They have a reasonable "tenant" with a good business model and an open mind who will look after their asset and be a good investment on the longer term. They have land that is unproductive while the rain stays away but I suspect there isn't a pack of other "tenants" baying for blood, eager to take the land on for a few dollars more either. All entirely my own assumptions, of course. Feel free to correct me.

 

[John Slejpner]

I think Clive might have started the thread to keep his forum traffic up by asking a contentious question! In that respect, he was correct.

Hopefully you are correct, if so he went to a lot of trouble.

 

[Clive]

I think Clive might have started the thread to keep his forum traffic up by asking a contentious question! In that respect, he was correct.

traffic is at all time record highs recently, seems the internet is pretty popular when you can’t go out !

 

[Brisel]

Hopefully you are correct, if so he went to a lot of trouble.

Not exactly difficult to think up a clickbait question, is it?

 

[milkloss]

traffic is at all time record highs recently, seems the internet is pretty popular when you can’t go out !

which is odd for a FARMING forum. I've still got the same old sh1t to do everyday and very little has changed for me except for the Mrs going mental with a child thats got verbal diarrhoea!

 

[John Slejpner]

which is odd for a FARMING forum. I've still got the same old sh1t to do everyday and very little has changed for me except for the Mrs going mental with a child thats got verbal diarrhoe!

Yes ..i have urea to spread.
But motivation is lacking...bone dry, 21 degrees, slight breeze with dust-devils around the yard.