Rents

[Clive]

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 ?

 

[Al R]

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 ?

I asked jokingly on one block of land I rent and was told definitely not as rent would be the only money they would have coming in - big organisation too!

 

[Flower Power]

As farmers working in isolation, are you really impacted by Covid-19 to the same extent as the general population?

 

[Clive]

As farmers working in isolation, are you really impacted by Covid-19 to the same extent as the general population?

well i’m told dairy farmers are seeing price cuts and pouring milk down drains ? crazy when my local shop is rationing today 1 L at a time per customer !

the logistics of keeping a very simple arable farm going are a lot more complex and fragile than they were a month ago

regardless of c19 weather has significantly impacted most farms this year, seems when other industries are looking at reduced output they pass that pain on to suppliers and landlords .. .......... why don’t we learn from their example here ?

 

[Roger Perry]

But, Clive, you are not looking at reduced output............in fact if the prices for your production hold/increase your income could in fact increase too.
I realize what you say about commercial tenants taking a rent furlough, I am in the same spot too............but, this is a tough time for everyone and if your business is still able to function I personally would consider it bad form to complain.
Just suck it up and plunge forward...........good luck whatever you decide.

 

[midlandslad]

I can imagine that any arable farm asking for a rent reduction due to Covid-19 will get a pretty quick response

 

[Farmer Fin]

Is the issue not that there are still plenty of other farmers still willing to pay full rent if you walked away? Where as currently the industrial units won’t be filled again in a hurry.

 

[ffukedfarmer]

If not a reduction, then how about a discount for paying in advance? I would be happy to pay the next 2 quarters now if there was a decent enough incentive.

 

[Phil P]

I can imagine that any arable farm asking for a rent reduction due to Covid-19 will get a pretty quick response

A lot of smaller Arable farms rely on other external income to support there businesses!
I could name a number of forum members that will have lost off farm income at the moment, personally I’ve had one of my big engineering contacts suspended with a local airport. That one job alone is 10’s of thousands a year of lost income! How many farms will have office/holiday let’s, camp sights, commercial units etc.
Fortunately I own the majority of my land but I know many don’t and will be struggling with loss of income to pay bills.

 

[DrDunc]

Beef, lamb and dairy farmgate prices have tumbled

Yet there's retail rationing and price hikes to the housewife

Yes, rents should be reduced

But not for the big arable boys

Right now, they're only having to suffer the cost of not getting to ski on the French piste ?

 

[Chae1]

Daft idea in my opinion. Virus hasn't affected my day to day life or business costs at all.

 

[chipchap]

Any reduction or discount would need to be on a case by case basis.
some sectors are pretty much operating as normal, others have seen their market completely disappear.

 

[Daniel]

You can't shift chipping potatoes at the moment. I had a rent bill yesterday.

Hmmmm

 

[fieldfarmer]

Daft idea in my opinion. Virus hasn't affected my day to day life or business costs at all.

So because it hasn't affected you it must be a daft idea?

 

[midlandslad]

Your time will come for rent reviews on arable units, just not now @Clive

 

[midlandslad]

Most commercial landlords will allow a rent holiday due to concerns replacing the tenant. With farms there would be a queue of people to rent the unit

 

[Derrick Hughes]

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 ?

Will you take less for your straw
No you wont

 

[Al R]

A lot of smaller Arable farms rely on other external income to support there businesses!
I could name a number of forum members that will have lost off farm income at the moment, personally I’ve had one of my big engineering contacts suspended with a local airport. That one job alone is 10’s of thousands a year of lost income! How many farms will have office/holiday let’s, camp sights, commercial units etc.
Fortunately I own the majority of my land but I know many don’t and will be struggling with loss of income to pay bills.

Just a small time sheep farmer here and it’s going to cost me a lot of money between now and September of lost revenue from camp sites/holiday let’s/ other non farming enterprises. All my ground is rented

 

[fieldfarmer]

c

Will you take less for your straw
No you wont

But we often are used for deferred payment, sometimes years.

 

[Happy]

well i’m told dairy farmers are seeing price cuts and pouring milk down drains ? crazy when my local shop is rationing today 1 L at a time per customer !

the logistics of keeping a very simple arable farm going are a lot more complex and fragile than they were a month ago

regardless of c19 weather has significantly impacted most farms this year, seems when other industries are looking at reduced output they pass that pain on to suppliers and landlords .. .......... why don’t we learn from their example here ?

The logistics of running a simple arable farm must be one of the least affected operations in any sector at the moment.
Less than a livestock farm where more jobs require two people to perform them and way less than most other sectors.

No case at all for a reduction.