Section 12, rent review 2021.

[Surgery]

This is going to cause of lot of issues and cost for both landlord and tenant , the only ones doing any good out of sfp reductions and elms-changes of any type are agents.
They will milk anything to the high heavens and in most cases both ll and tenant will use one in nothing more than a posh argument. The issue is then becomes the fact , certainly in my case , will be dealing with some sh1t don’t stink type dolly bird who quite frankly has not got a clue what she’s at.

 

[chipchap]

There will be no need to force rents down: Inflation will erode them very quickly in the next few years.

 

[midlandslad]

With current ag commodity prices there must be an argument for rent increases despite a drop in the BPS.

 

[Mixedupfarmer]

With current ag commodity prices there must be an argument for rent increases despite a drop in the BPS.

 

[midlandslad]

Why is this such nonsense? If you can’t make good money at these prices is it not time to throw the towel in!?

 

[B'o'B]

Why is this such nonsense? If you can’t make good money at these prices is it not time to throw the towel in!?

Commodities prices aren’t the only thing that’s up.
Fert is way up, machinary way up, labour will be up or walk, glyphosate way up.
I’ll grant you current levels make it trickier arguing a reduction right now, but a strong case can be make for no increase.

 

[Mixedupfarmer]

Why is this such nonsense? If you can’t make good money at these prices is it not time to throw the towel in!?

Depends what rent you are on, and whether prices for commodities remain strong enough for the next three years, with the loss of the BPS cushion, and an explosion in input prices, ELMS looking financially non viable for many tenants, loss of many chemical actives, more extreme whether, etc, etc. Who knows, you may be right, but the job is getting very high risk.

 

[B'o'B]

Depends what rent you are on, and whether prices for commodities remain strong enough for the next three years, with the loss of the BPS cushion, and an explosion in input prices, ELMS looking financially non viable for many tenants, loss of many chemical actives, more extreme whether, etc, etc. Who knows, you may be right, but the job is getting very high risk.

Loss of CTL will have a big impact this year.
I’ve managed to do an okay job keeping my wheats reasonably clean this year, but at much higher cost. Also my peas have cost me more to do a worse job than my old go to of Alto Elite would have done. It’s not just input pric inflation, it is also the removal of low cost (and very reliable) solutions which is adding cost,

 

[Worsall]

Don't let Agents start talking your rent up because Wheat is at £200/t. Firstly it is at £200/t because of poor yields around the world, this country included with no 2020 carry over. Costs are continuing to rise, fertiliser, chemicals, machinery dealer costs etc etc etc. Limited rotation options that show a reliable gross margin to get your wheat. Key words to keep using, 'PRODUCTIVE CAPACITY'.

 

[midlandslad]

Don't let Agents start talking your rent up because Wheat is at £200/t. Firstly it is at £200/t because of poor yields around the world, this country included with no 2020 carry over. Costs are continuing to rise, fertiliser, chemicals, machinery dealer costs etc etc etc. Limited rotation options that show a reliable gross margin to get your wheat. Key words to keep using, 'PRODUCTIVE CAPACITY'.

Costs are continuing to rise so why shouldn’t the rent, doesn’t the landowner deserve a fair return.

 

[B'o'B]

Costs are continuing to rise so why shouldn’t the rent, doesn’t the landowner deserve a fair return.

Doesn’t the tenant deserve a fair return? If there’s no more profit after costs, where exactly is the LL extra money supposed to come from?

 

[Flat 10]

The weird values of stuff means neither LL or tenant makes a fair return from ag IMO

 

[Mixedupfarmer]

Doesn’t the tenant deserve a fair return? If there’s no more profit after costs, where exactly is the LL extra money supposed to come from?

Land value increases and favourable long term taxation, not by screwing the tenant.

 

[chipchap]

Land value increases and favourable long term taxation, not by screwing the tenant.

The land agent makes his living by screwing the tenant, surely?

 

[Forkdriver]

Some land agents work for the tenant, so hopefully isn't screwing his clients. The blond at adviser wrote a very helpful blog on the subject.

How do you review a rent under the Agricultural Holdings Act 1986?

I often talk about tenancy agreements and sometimes talk about the nitty gritty of the legislation itself, this is one of those posts… It is less ‘current’ and more about giving basic info on how t…

blondeagadvisor.wordpress.com

 

[Mixedupfarmer]

The land agent makes his living by screwing the tenant, surely?

I missed the word "harder" off the end of my post

 

[Wombat]

Costs are continuing to rise so why shouldn’t the rent, doesn’t the landowner deserve a fair return.

Out of interest how much do you farm?

 

[Mixedupfarmer]

Out of interest how much do you farm?

Think he may work for a land agent going on some previous posts, but apologise in advance if I am wrong.

 

[midlandslad]

Yes, I do work as a land agent but don’t deal in any landlord and tenant matters. Family farm both arable and livestock too, on both owned and rented land.

 

[B'o'B]

Yes, I do work as a land agent but don’t deal in any landlord and tenant matters. Family farm both arable and livestock too, on both owned and rented land.

Have you written to your LL to tell them there’s too much money coming in and you’re seeking a rent increase?