warksfarmer
Member
Ok to lease to a solar operator the going rate is £900/acre. Say a site of 50 acres means £45,000/year x 25 yr term = £1,125,000.
What can the land earn growing crops over the same term?
Growing a rotation of 3 crops, which might change admittedly but we need a comparison somehow so the 3 main crops would be wheat, oilseed rape and barley?
ww, 3.5t/ac x £150/t - £180 inputs - £150 contractor = £195
£195/ac + average sfp over the next 25 years say £50/ac? = £245/acre
£245/ac x 50ac x 8.3 wheat crops = £101,675
wosr, 1.5t/ac x £300/t - £180/ac inputs - £150/ac contractor = £120/ac
£120/ac + average sfp over the next 25 years say £50/ac? = £170/acre
£170/ac x 50ac x 8.3 wheat crops = £70,550
wbarley 3t/ac x £150/t - £180/acre input - £150/ac contractor = £120/ac
£120/ac + average sfp over the next 25 years say £50/ac? = £170/acre
£170/ac x 50ac x 8.3 wheat crops = £70,550
Total earning off crops £242,775
Feel free to tweak the figures as the above is merely a starting point. Plently of people are doing the machinery bit a lot less than a contractor and plenty will be getting better yields.
What are the tax implications of leasing the land to a solar operator?
What can the land earn growing crops over the same term?
Growing a rotation of 3 crops, which might change admittedly but we need a comparison somehow so the 3 main crops would be wheat, oilseed rape and barley?
ww, 3.5t/ac x £150/t - £180 inputs - £150 contractor = £195
£195/ac + average sfp over the next 25 years say £50/ac? = £245/acre
£245/ac x 50ac x 8.3 wheat crops = £101,675
wosr, 1.5t/ac x £300/t - £180/ac inputs - £150/ac contractor = £120/ac
£120/ac + average sfp over the next 25 years say £50/ac? = £170/acre
£170/ac x 50ac x 8.3 wheat crops = £70,550
wbarley 3t/ac x £150/t - £180/acre input - £150/ac contractor = £120/ac
£120/ac + average sfp over the next 25 years say £50/ac? = £170/acre
£170/ac x 50ac x 8.3 wheat crops = £70,550
Total earning off crops £242,775
Feel free to tweak the figures as the above is merely a starting point. Plently of people are doing the machinery bit a lot less than a contractor and plenty will be getting better yields.
What are the tax implications of leasing the land to a solar operator?