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Farm Building and Infrastructure
Renewable Energy
Solar farm vs growing crops
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<blockquote data-quote="warksfarmer" data-source="post: 239917" data-attributes="member: 192"><p>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.</p><p></p><p>What can the land earn growing crops over the same term?</p><p></p><p>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?</p><p></p><p>ww, 3.5t/ac x £150/t - £180 inputs - £150 contractor = £195</p><p>£195/ac + average sfp over the next 25 years say £50/ac? = £245/acre</p><p>£245/ac x 50ac x 8.3 wheat crops = £101,675</p><p></p><p>wosr, 1.5t/ac x £300/t - £180/ac inputs - £150/ac contractor = £120/ac</p><p>£120/ac + average sfp over the next 25 years say £50/ac? = £170/acre</p><p>£170/ac x 50ac x 8.3 wheat crops = £70,550</p><p></p><p>wbarley 3t/ac x £150/t - £180/acre input - £150/ac contractor = £120/ac</p><p>£120/ac + average sfp over the next 25 years say £50/ac? = £170/acre</p><p>£170/ac x 50ac x 8.3 wheat crops = £70,550</p><p></p><p>Total earning off crops £242,775</p><p></p><p>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.</p><p></p><p>What are the tax implications of leasing the land to a solar operator?</p></blockquote><p></p>
[QUOTE="warksfarmer, post: 239917, member: 192"] 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? [/QUOTE]
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