Tenant farm, new application, what to propose to pay

[Olivia01423]

Hello everyone,

I am applying for a tenant farm which has a heavy focus on conservation, sustainability and diversification. Its an 84 hectare holding, has a farmhouse and some farm buildings (many in need of repair/ not suitable for livestock).

We would be farming sheep and some native breed cattle, but also have an income from my job part time. The landowner doesn't want heavy grazing/ like a normal commercial farm so we may be restricted on numbers...which will obviously affect income.

How much would you suggest to pay (per annum ideally) for something like this?

 

[Tubbylew]

Not a very helpful answer, so apologies in advance, I'd expect them to pay me 30-40k per year plus 28 days holiday a year, and pension. It sounds like you're going to be putting a huge amount of yourself into it, but being hamstrung from the start, also bear in mind the turmoil the loss of BPS will cause in the next few years and the conditions that maybe imposed on you by ELMS and you landlord looking to replace the aformentioned, also I'd be very wary of subsidising somone elses conservation project with part time income, as usefull as the income maybe, you'll need capital when you farming career inevitably ends(retirement hopefully) best of luck and sorry for being negative.

 

[Muddyroads]

Is it a private landlord or an organisation?

 

[egbert]

Hello everyone,

I am applying for a tenant farm which has a heavy focus on conservation, sustainability and diversification. Its an 84 hectare holding, has a farmhouse and some farm buildings (many in need of repair/ not suitable for livestock).

We would be farming sheep and some native breed cattle, but also have an income from my job part time. The landowner doesn't want heavy grazing/ like a normal commercial farm so we may be restricted on numbers...which will obviously affect income.

How much would you suggest to pay (per annum ideally) for something like this?

Despite the evident restrictions and potential liabilities, and BPS about to dry up...there'll doubtless be a queue of dreamers out the agents door.
The rent will bear no relation to the earning capacity of the holding, but will be more a reflection of the perceived desirability of the location and lifestyle.

 

[chipchap]

If they are going to make you farm to their blueprint, tell them to crack on with it themselves.

 

[Mixedupfarmer]

Hello everyone,

I am applying for a tenant farm which has a heavy focus on conservation, sustainability and diversification. Its an 84 hectare holding, has a farmhouse and some farm buildings (many in need of repair/ not suitable for livestock).

We would be farming sheep and some native breed cattle, but also have an income from my job part time. The landowner doesn't want heavy grazing/ like a normal commercial farm so we may be restricted on numbers...which will obviously affect income.

How much would you suggest to pay (per annum ideally) for something like this?

You really need the farm in HLS or mid tier with lots of high value options and be able to keep these payments as tenant in order to make it worth while imho.

 

[Flat 10]

Hello everyone,

I am applying for a tenant farm which has a heavy focus on conservation, sustainability and diversification. Its an 84 hectare holding, has a farmhouse and some farm buildings (many in need of repair/ not suitable for livestock).

We would be farming sheep and some native breed cattle, but also have an income from my job part time. The landowner doesn't want heavy grazing/ like a normal commercial farm so we may be restricted on numbers...which will obviously affect income.

How much would you suggest to pay (per annum ideally) for something like this?

Work out how much you might make from your enterprises and use that as a starting point per acre. Assuming that there’s a house in ok condition with no massive liabilities add a bit on for that as you have to live somewhere (other’s will violently disagree with me here). Show your LL what is possible for you to pay and how you have worked it out. If they are reasonable and your plan is good there’s no reason why you shouldn’t be successful.

 

[Formatted]

This will be the Yorkshire Water Tenancy?

 

[endeavour]

Realise you want some guidance if possible but it would seem their are a few basics to clarify such as repairs or renovation to dilapidated buildings who pays are any suitable for holiday lets? but more importantly does the tenancy carry maximum stocking rates in terms of LSU// acre to constitute tenancy breaches and is it a fbt or full agri tenancy.Many other factors to consider most only assumed by you any thing else sure the pundits on here will help but consensus is not guaranteed. Most importantly will be your own belief in a sustainable farming future.

 

[farmerm]

Start with some basic numbers, how much stock can the land/ is the land allowed to support and what margin can you reasonably expect? Lets call it 200ac, stocked at 1.5 ewe per ac thats 300 ewes. Lets say you can make £10/ewe profit So you would be getting a return of £3000 income and a home for your investment in rent, capital and your effort. Perhaps you can stock at 3 ewes per ac (if you are willing to lamb 600 without adequate buildings) and can somehow make £40/ewe profit, you might make £24,000 in income from your investment in rent, capital and effort...

 

[whitefox]

If its being let by this parasitic shower of ?, then read the small print very very carefully, couldn't lie straight in bed these ratbags

 

[Part timer farmer]

I’ve been through all this and 10 yrs later we are still here - we used a good agent and put together a decent realistic plan. Reality is on a small farm for us it’s not profitable but aim to cover your costs. The house needed a lot of work but we are almost done with it and the fences were in pieces, we do a bit ever year. We run flock of commercial ewes focus is on something that will sell well every year. Be realistic on what you will spend on the house as you’ll never own we did a lot ourselves apart from kitchen. I Have a proper job too - first few years took a while to get going with stock and kit, father had had farm and sold up - all left was a set of Burddizo and an adjustable spanner! Good luck with it

 

[bluepower]

Hello everyone,

I am applying for a tenant farm which has a heavy focus on conservation, sustainability and diversification. Its an 84 hectare holding, has a farmhouse and some farm buildings (many in need of repair/ not suitable for livestock).

We would be farming sheep and some native breed cattle, but also have an income from my job part time. The landowner doesn't want heavy grazing/ like a normal commercial farm so we may be restricted on numbers...which will obviously affect income.

How much would you suggest to pay (per annum ideally) for something like this?

It sounds a bit like our landlords, if it is a large national conservation trust then I would strongly advise you to think again and look elsewhere as they will pull your pants down for sure. PM me if you would like a lifetime of advice.

 

[RedMerle]

0

I’ve been through all this and 10 yrs later we are still here - we used a good agent and put together a decent realistic plan. Reality is on a small farm for us it’s not profitable but aim to cover your costs. The house needed a lot of work but we are almost done with it and the fences were in pieces, we do a bit ever year. We run flock of commercial ewes focus is on something that will sell well every year. Be realistic on what you will spend on the house as you’ll never own we did a lot ourselves apart from kitchen. I Have a proper job too - first few years took a while to get going with stock and kit, father had had farm and sold up - all left was a set of Burddizo and an adjustable spanner! Good luck with it

If it's the Yorkshire Water tenancy then it is 5 years starter farm FBT. At the end of the 5 years you have to leave to hand over to another new entrant.

Not sure whether that changes people's advice?

 

[Tubbylew]

0

If it's the Yorkshire Water tenancy then it is 5 years starter farm FBT. At the end of the 5 years you have to leave to hand over to another new entrant.

Not sure whether that changes people's advice?

Not really, what can be achieved on a 5 year fbt, that can't be achieved on grazing licences? 5 yrs is like a long holiday in agricultural terms, it's a start I suppose, but not worth hanging many pictures about the place, let alone meaningful improvements. Funny old world

 

[ajcc]

Make your own decisions don’t be too concerned by the cynical voices of experience. You got to believe in your dream.

 

[Sid]

Make your own decisions don’t be too concerned by the cynical voices of experience. You got to believe in your dream.

Too right,
I've put a few tenders in on blocks of land over the years, won some lost some.

No qualms about any I haven't got....or have got

 

[Flat 10]

Too right,
I've put a few tenders in on blocks of land over the years, won some lost some.

No qualms about any I haven't got....or have got

Good way to be. Similar here.

 

[Olivia01423]

Thanks everyone, for us it would be a fantastic opportunity and one I think we could make viable in 5yrs. Just stuck on how much to pay as don't want to be too high or too low! Going to apply and fingers crossed we get it. Thanks for all your advice/ help

 

[sensiblefarmer]

Thanks everyone, for us it would be a fantastic opportunity and one I think we could make viable in 5yrs. Just stuck on how much to pay as don't want to be too high or too low! Going to apply and fingers crossed we get it. Thanks for all your advice/ help

Good Luck, but make sure your budget stacks up. Hopefully if all goes well the LL will offer you a run on tenancy...do ask likelihood.
keep eyes peeled for opportunities as there maybe a few coming up as many will chuck the towel in.