tenancies and brexit

glasshouse

Member
Location
lothians
This important thread seems to have drifted off the topic.

I have a block of land which I have had on FBT's for 15 years. It is all grass and of very average quality being low Grade 3 land.
The landlord feels that as the rent has not increased for a long time it is due to be renegotiated from this September.
There are no buildings and no handling facilities, it is just small fields on wealden clay, which gets wet in the winter but will grow grass if fed in the summer. There are a number of hedges which we have to keep in good order and we have replaced some of the fencing (at our cost but is reclaimable from the landlord up to 10 years pro rata).

With the present uncertainty I am at a loss to know what rent to offer and I certainly do not want to commit to anything long term. This type of land with no BPS and nothing to get it an environmental payment has no value at all. Trying to keep sheep on it (it won't finish lambs) at store value looks like a losing battle.

I have suggested to the agent that we take it on a one year basis, but for obvious reasons the landlord wants longer. I am tempted to walk away.

Remember this is not in an area where everyone is chasing the last blade of grass. At present cattle are losing money and if sheep prices continue their downward trend then store lambs will be a lower price than last year which hardly gave a profit.

I would guess I am not alone in this situation. What are others doing?
Typical moronic agents and landlords.
Who gets the bps?
 
we are under rent review, from 1/5/20, being pushed by agents to settle now, I am not agreeing to anything, and will wait till the last moment, basically waiting till we have a idea of , when, if, perhaps, Brexit will incur
 
How about a grazing licence on an annual basis for now? No reason why you can't put a formula in for a reduction in BPS e.g. if your rent is £85/acre now, drop the rent by £1 for every £1 reduction in BPS then have another clause to say both parties can renegotiate if anything major changes in the subsidy system. If they won't have any flexibility, walk away.
This would seem to be logical and a one year licence is what I am already suggesting. However if lamb price falls and the BPS disappears in the worst case scenario then the rental value is negative. This landlord will want the land maintained to a high standard and would probably pay to have it grazed! The rent at the moment is only 75% of the BPS which is plenty for where it is and the difficult conditions, which include a footpath which all the local dog walkers use!


Not sure how old you are, but maybe the ideal chance to wind things down a little?
I am happy to wind down and am already doing so, but I have family who are carrying on. However the next generation will not be working just for the landlord to get richer than he already is.


Typical moronic agents and landlords.
Who gets the bps?
To be fair the Agent is realistic and knows how difficult this situation is at the moment. In this area finding another tenant with sheep and having other land and buildings nearby and able to take the animals off the land if it gets wet at short notice will be hard. The landlord does not want it ploughed and does not like sheep being fed on the land! Doesn't like mud and all the access gates have to be kept locked.
 

chipchap

Member
Location
South Shropshire
I don’t think there is any doubt that government subsidies will be targeted more towards environmental and access objectives. Food production will in the meantime be left to the world market, which will be a mistake in my opinion. The industry will always produce opportunities for young dynamic individuals, but business will no doubt be tougher.
 

Brisel

Member
Location
Dorset
I'd say the tenant will have to do some of the work for the stewardship compliance therefore ought to have a slice of the action.

Post Brexit, I see more of this happening.
 
What is forum verdict on large hill farm being let with bps too tenant, but landlord going too be claiming stewardship payment?
It will be very unlikely that BPS will continue after Brexit, the only discussion is how soon it finishes. The new ELMS scheme has the potential to be another bureaucratic nightmare. Therefore the poor tenant just ends up having to do all the work for the landlord so he can claim all the ELMS money.
Not a good scenario for the tenant!
 

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