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

farmboy

Member
Location
Dorset
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.
Do any councils permit subletting? Or selling standing crops?
 

teslacoils

Member
Location
Lincolnshire
Do any councils permit subletting? Or selling standing crops?
Probably not.

Just "pay" the spud grower for all the work, seed, spray, and sell them the crop. Contra the lot and end up with the rent. Ditto grass. Then it's not a let. But we all know it is. 20 hours carting spuds at £300 an hour. Or I suppose the big growers could just give one of their staff a hand applying for the tenancy.

Just ideas. Sure it never happens. Llama petting, hand knitted yakswool yurts. I don't know. Just tell them what they need to hear which is pile of dosh with environmental fluff around it. Only plant at midnight on a full moon / seeds all the right way up etc.
 

RedHairedGirl

Member
Livestock Farmer
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.
thank you very useful info
 

Oscar

Member
Not sure how common it is but around here you offer £x per acre for the land and buildings and then £y for the house , rather than one figure for the lot .
 
do your figures, then get someone sensible to check them, for reality. Always been told, if you want something enough, you will play around with your costings, till they support your wish ! You must also think, what is coming round the corner post Brexit, and corvid, to which, there is no answer, as nobody knows ! An early 'review' clause could solve that one. But, good luck with your tender, and if, unsuccessful, there may be a lot of 'share farming' agreements, in many different options, available, post Brexit, but, as before, we don't know yet, what the new rules will be !
 

Henarar

Member
Livestock Farmer
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.
how long is the tenancy to run ?
do you have to pay for the work that needs doing to the buildings/clamp/slurry storage ?
someone I know rented a council farm that sounds a bit like this and milked there 10 year tenancy and wife worked off farm, they sold a house to take the farm and ran it for ten years, he said that after selling all the live and deadstock and everything they had made they wouldn't have enough to buy their old house back, so had chucked 10 years of their life away
beware of paying to much rent for a place that needs work on a short term [10 years is short term] tenancy
 
the short FBT's simply are not long enough, most 2-5 year term, doesn't do either the owner, or the tenant any long lasting benefit . The tenant isn't there long enough to build up a realistic 'net worth', so has to farm 'short-term', rather than long, basically raping the ground, and who can blame then ? The owner is the loser, as the farm, isn't looked after, as it should be, so deteriorates, the only winners are the land agents, who readily push short term FBT's, I wonder why ? The old tenancy system, was to far, in the tenants favour, x3 generations, the new, to far, the other way , the solution, someone a lot cleverer than me, can sort that out !
 

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