I am FBT as well. It looks like the SFI might be doable for most at some level, but requires land to be taken out of production to claim, and on current payment rates will not overall produce a margin on that land any better than a mediocre combinable break as far as I can make out, a bit like mid tier options (unless payment rates increase when the scheme is rolled out). With known reductions in BPS going forwards, and massive increases in fertilizer and other inputs, I would have thought a reduction in rent should be possible on a aha, but guess you would need to do some forward budgets to show drop in profitability. DEFRA have also stated that they expect rents to fall. Obviously some commodity prices have risen (grains in particular), but with loss of many chemical actives, and further restrictions on things like manure/sludge spreading, it is going to be increasingly difficult to maintain productivity going forwards. Is a difficult one, but not as difficult as getting an FBT rent downWell possibly.
But I know where sfp is going, and we're constantly told elms etc are not replacement schemes.
Cereals are volatile, costs to produce can be expensive.
I really feel aha rents should reflect this now, and reduce.
Yes, I feel rents are at a turning point, (downwards).Fbt should be down by the fall in bps
high price of grain is based on lower yields last year
higher Fert and machinery fuel and labour
fbt here down by the bps reduction
aha formula will reflect the lower bps higher costs
it is important than some tenants do not agree increases as these will be used as comparables by agents