Will rents adjust if Brexit?

[Robw54]

Seem to be looking more likely than ever the possibility of a Brexit - with the potential loss of area subsidy would rents have to adjust pretty quickly?

 

[Jon]

I hope so, that's my main concern , the inevitable battle with the Landlord.
I will say they have to if our government doesn't support us, but will rents come down enough , I feel they won't and things will be very hard for tenant farmers.

 

[yellow belly]

if brexit reduces the bps then rents fall by the reduced payment if they don't then there will be land unfarmed

when prices were low in the noughtys land rent was at setaside payments and farmers could crop land if it made a margin to plant

 

[turbo]

if brexit reduces the bps then rents fall by the reduced payment if they don't then there will be land unfarmed

when prices were low in the noughtys land rent was at setaside payments and farmers could crop land if it made a margin to plant

What different now? The bps is the same as the old set aside payments and people still pay more than some people thinks the land is worth. I can guess if you think rents are to expensive now you will still think they are after we lose bps

 

[ARW]

If rents fall by the same amount as the lost sub then your no better off. I think they will drop abit but just be more unprofitable

 

[Pennine Ploughing]

No rents are the same as anything else they will fluctuate with supply and demand it's that simple

 

[David.]

There will still be CGT rollover lotto winners, who want their offspring to have the biggest toys in the parish, there will still be farmers who want to make the same profit but over twice as many acres, by "spreading their overheads" and there will still be keen and able kids, born without a silver spoon in their mouths, who want a start in farming and who therefore have no option but to tender a big rent to get a starter farm.
And estates are taking back in hand as fast as they can.
So no rents will not decrease.

 

[bobk]

Rents will go up in the event of brexit...... cos we'll all be millionaires nigel says so

 

[Robw54]

Guess we are going to find out. 2 more years of BPS?

 

[Brisel]

Guess we are going to find out. 2 more years of BPS?

2 years from the formal notice under Article 50 of the Treaty of Rome. A possible scenario would be that we time our exit for the end of the current EU budget in 2019, so no change in BPS for now. Longer term tenancies will be the more uncertain but a clause in the agreement about subs ought to leave wriggle room on both sides.

 

[Wastexprt]

2 years from the formal notice under Article 50 of the Treaty of Rome. A possible scenario would be that we time our exit for the end of the current EU budget in 2019, so no change in BPS for now. Longer term tenancies will be the more uncertain but a clause in the agreement about subs ought to leave wriggle room on both sides.

Would force majeure apply here?

 

[Brisel]

Good question. I can't see landlords falling over themselves to offer discounts & rents didn't fall with BPS, did they?

I very much doubt that the subs will disappear to zero anyway. I think commodity prices will dictate the pitch of tenders anyway. They have tended to move with them in the past.

 

[rob1]

Good question. I can't see landlords falling over themselves to offer discounts & rents didn't fall with BPS, did they?

I very much doubt that the subs will disappear to zero anyway. I think commodity prices will dictate the pitch of tenders anyway. They have tended to move with them in the past.

perhaps a rent of say a tonne of wheat is fair on all parties in the future

 

[Robw54]

2 years from the formal notice under Article 50 of the Treaty of Rome. A possible scenario would be that we time our exit for the end of the current EU budget in 2019, so no change in BPS for now. Longer term tenancies will be the more uncertain but a clause in the agreement about subs ought to leave wriggle room on both sides.

Question is where the EU going to get the missing 8.5billion net we pay at the moment - assume half of that covers the CAP budget for other member states. Looks like the whole EU is facing a pay cut.

 

[Pennine Ploughing]

Question is where the EU going to get the missing 8.5billion net we pay at the moment - assume half of that covers the CAP budget for other member states. Looks like the whole EU is facing a pay cut.

we get about 4.5 billion back now, so the short fall to the EU pot will be 4 billion

 

[Robw54]

we get about 4.5 billion back now, so the short fall to the EU pot will be 4 billion

Net contributions are about 13 billion and we get about 4.5 back. Big hole for them to fill and it all budgeted out to 2020. I gather we actually pay about 18 billion but get 5 billion rebate.

 

[Pennine Ploughing]

Net contributions are about 13 billion and we get about 4.5 back. Big hole for them to fill and it all budgeted out to 2020. I gather we actually pay about 18 billion but get 5 billion rebate.

sorry your right, been a long day

 

[Robw54]

sorry your right, been a long day

If they are right to be wanting us out asap - how can the CAP payments continue if the contributions stop?

 

[Pennine Ploughing]

do we not have to pay in up to date on the date we leave

 

[Y Fan Wen]

Question is where the EU going to get the missing 8.5billion net we pay at the moment - assume half of that covers the CAP budget for other member states. Looks like the whole EU is facing a pay cut.

Of course we will have to continue to pay this sum in order to maintain access to European markets.