talking on a tenant farm - how much rent should we pay?

[RedHairedGirl]

 

[teslacoils]

Do you want the "proper" way, or the "how o win the tender way"?

 

[RedHairedGirl]

Do you want the "proper" way, or the "how o win the tender way"?

well TBH I'd like to do it properly but is your experience that this way might not actually be the most successful?

 

[Hilly]

Do you want the "proper" way, or the "how o win the tender way"?

What’s the how o win tender way .?
.

 

[Nearly]

What’s the how o win tender way .?
.

Double it?

 

[T C]

15% of gross output is a good figure to work to. (Used to be 15% of gross output for rent and finance)
If there is a house involved you could justify paying an extra bit for that depending on its condition.
When budgeting make sure you have a greater net worth at the end of the process than the start!

 

[yellow belly]

find out what criteria the owners are letting the farm on

 

[Flat 10]

Do the gross margins of the enterprises you are planning on and work out what you can pay. I would add something for the house. Don't forget any maintenance costs. Check whether you will get dilapidation from previous tenant.

 

[RedHairedGirl]

thank you for the comments,


we have a whole list of criteria to consider so we are working working through this as well as working out what the gross margin will be. There is a house as well. Quite a few of the farm buildings are dilapidated and will require work. Silage clamp not suitable for silage and slurry lagoon will need emptying and filling in.

I am also trying to fond out rental prices for other farms/ground locally but this is proving more difficult than I imagined.

 

[Flat 10]

thank you for the comments,


we have a whole list of criteria to consider so we are working working through this as well as working out what the gross margin will be. There is a house as well. Quite a few of the farm buildings are dilapidated and will require work. Silage clamp not suitable for silage and slurry lagoon will need emptying and filling in.

I am also trying to fond out rental prices for other farms/ground locally but this is proving more difficult than I imagined.

There were other threads on this about applying for a council farm started quite recently, you should look at those.

 

[Mc115reed]

thank you for the comments,


we have a whole list of criteria to consider so we are working working through this as well as working out what the gross margin will be. There is a house as well. Quite a few of the farm buildings are dilapidated and will require work. Silage clamp not suitable for silage and slurry lagoon will need emptying and filling in.

I am also trying to fond out rental prices for other farms/ground locally but this is proving more difficult than I imagined.

If it’s Staffordshire county council you’ll need too offer atleast £220+ an acre or you’ll be wasting your time...

 

[Courier]

Need to be able to have a review before too long once it is known what effect any sort of Brexit will have on profitability - Not a good time to be doing 5 year cashflow forecasts...

Would be a good idea to have 2 or three years rental equivalent in a savings account which you don't need to touch for any other purpose.

 

[chaffcutter]

Are Staffs really that greedy?

 

[Mc115reed]

Are Staffs really that greedy?

Yep takes some justifying when most the houses on staffs farms are close too falling down and they spend minimal money on the farms general upkeep

 

[Flat 10]

I asked before, do you know that for a fact?

 

[farmboy]

Are Staffs really that greedy?

Staffs set the rent, you don’t tender

 

[Flat 10]

Staffs set the rent, you don’t tender

You definitely know then!

 

[teslacoils]

Just be aware that the rent you can afford to pay, and what you need to bid to get it may not be the same.

If grassland in a strong dairy area can be let at £200 plus the sub, and there's a half nice house with space for a horse then tendering £60/AC or whatever you may as well not even waste the money on the pack.

Why fill in the lagoon unless it is unsafe, when you could have it filled with digestate and get your fertiliser for free?

Work out profit. Decide how much of that you want to pay in rent. That's one way. £150+ an acre plus a grand a month for those house might be a good start.

 

[Formatted]

Will go for £180-190 an acre, Council won't want a dairy farmer nextdoor renting it but they do set the prices locally so 180-190 will be a sensible rent. If you can't make it work at those numbers, don't tender

 

[teslacoils]

Will go for £180-190 an acre, Council won't want a dairy farmer nextdoor renting it but they do set the prices locally so 180-190 will be a sensible rent. If you can't make it work at those numbers, don't tender

Yup. Application packs are a good money spinner. I haven't checked the thread for details of the farm, but let's say it's 100ac with a three bed bungalow. Well the house is ten grand a year and the farm stewardship pays £350/ha for gs4 grass, plus sub so you could easily say that's £250/AC selling the standing grass and taking some sheep over winter, while going out carting spuds for so done else...... especially if you let them 20ac for roots every year.