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Farm Business
Tenant Farming, Subsidies, BPS & Legal Issues
tenancies and brexit
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<blockquote data-quote="soilbug" data-source="post: 6400802" data-attributes="member: 3925"><p>The landlord-tenant business partnership is one of the most precious partnerships ever created. The land owner retains title - usually hasn't the skill or funds to farm themselves - or not daft enough to take that risk. Consequently good tenants are valuable to them. The problem arises where too many silly tenants bid too high a rent becuse they have gone 'big' - big tractor - big yields - big ideas - requiring bigger acreages without understanding that 'big bottom lines' come first, which decides how big a rent to pay. Tech colleges/universities teach 'big' and the supply industry supports 'big', knowing the SFP has subsidised the farmer to keep him in business to pass them the cash.</p><p></p><p>Where else can a landlord safely bury his capital but in land - with a good tenant husbandsman (someone to 'husband' the farm, soil and assets - for those who are prickly feminists. The tenant gets the use of the land for - how much ?. Think about it - you might pay the Ll all of 1 to 2 % interest on his investment. It is an inprudent tenant who works his or her but off for very little profit in current times and carries all the business risk. </p><p></p><p>The solution is for government to kill off the farming tax allowances to owners whose income is not mainly from farming (IHT, FBA, etc). For example, many a captain of industry buys the big estate and manor house as a future medium to pass his industrial wealth on to his/her offspring, with the trivial 1% rent return of little consequence whilst enjoying the pheasant shoot and hunting. Industry should carry its own burdens - and agricultural land would then better reflect the returns to be had from farming. Watch out if Corbyn arrives to sort it out!.</p><p>soilbug</p></blockquote><p></p>
[QUOTE="soilbug, post: 6400802, member: 3925"] The landlord-tenant business partnership is one of the most precious partnerships ever created. The land owner retains title - usually hasn't the skill or funds to farm themselves - or not daft enough to take that risk. Consequently good tenants are valuable to them. The problem arises where too many silly tenants bid too high a rent becuse they have gone 'big' - big tractor - big yields - big ideas - requiring bigger acreages without understanding that 'big bottom lines' come first, which decides how big a rent to pay. Tech colleges/universities teach 'big' and the supply industry supports 'big', knowing the SFP has subsidised the farmer to keep him in business to pass them the cash. Where else can a landlord safely bury his capital but in land - with a good tenant husbandsman (someone to 'husband' the farm, soil and assets - for those who are prickly feminists. The tenant gets the use of the land for - how much ?. Think about it - you might pay the Ll all of 1 to 2 % interest on his investment. It is an inprudent tenant who works his or her but off for very little profit in current times and carries all the business risk. The solution is for government to kill off the farming tax allowances to owners whose income is not mainly from farming (IHT, FBA, etc). For example, many a captain of industry buys the big estate and manor house as a future medium to pass his industrial wealth on to his/her offspring, with the trivial 1% rent return of little consequence whilst enjoying the pheasant shoot and hunting. Industry should carry its own burdens - and agricultural land would then better reflect the returns to be had from farming. Watch out if Corbyn arrives to sort it out!. soilbug [/QUOTE]
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