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Farm Business
Tenant Farming, Subsidies, BPS & Legal Issues
Section 12, rent review 2021.
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<blockquote data-quote="Mixedupfarmer" data-source="post: 7699105" data-attributes="member: 70220"><p>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 down <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite3" alt=":(" title="Frown :(" loading="lazy" data-shortname=":(" /></p></blockquote><p></p>
[QUOTE="Mixedupfarmer, post: 7699105, member: 70220"] 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 down :( [/QUOTE]
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Farm Business
Tenant Farming, Subsidies, BPS & Legal Issues
Section 12, rent review 2021.
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