leasing a farm??

Harrier1980

Is there anyone here on long term lease of farms??
Its something i have been concidering for a while now and would be interested in talking to anyone who is activly doing this or has done in the past??

The opertunity of leasing a 100ac farm will be comming up soon near me and would love to speak with someone regarding the pros and cons of leasing!

All help appreciated

Dazzler88

they is a lot of benefits of Long term leasing,if you can get it.A new farmer will never turn a profit in his/hers first year.It could take 2 or more years before you turn a profit.
If the farm has entitlements and you can get them a face value,then you'll definitely make money.In saying that there is only two or so years left in the scheme and no body knows how the next one will be based.
I would recommend you look for a 10 year lease,this may your guaranteed to make some sort of profit.A lot depends on what type of farming your involved in.The Dairy guys are all looking to expend at the moment.

bob charles

Dazzler88 wrote: »

this way your guaranteed to make some sort of profit.

nothing is guaranteed in life my dear friend. I can think of two farms close by each getting 300ac's and I can be sure they are not making money. Prepare to pay 20k plus per annum

darragh_haven

bob charles wrote: »

nothing is guaranteed in life my dear friend. I can think of two farms close by each getting 300ac's and I can be sure they are not making money. Prepare to pay 20k plus per annum

Never a truer word said. a 100 acre farm in one block here in west cork is going for €200/acre on a 5 year lease. It'd be hard to make too much money after shelling out €20k a year! Altho, that is due to the high concetration of dairy farms nearby.

poor farmer

We have 100 ac leased with entitlements at big money.
The years fly by ,I would consider ten years to be the minimum.It allows you to plan ahead and expand
I consider leasing as a stepping stone eventually buying ,allowing you to build numbers and scale.

ravima

does the €200 per acre include or exclude all entitlements, single payment/disadvantaged area aid? If so,then the nett outlay is not huge. if not, the landlord is doing very well indeed!

allium

A big pro of leasing is that you're not exposed to a (maybe) falling land market.
There is a lot of potential downward pressure on prices for the forseeable future:

• NAMA (plus the very quiet Ulster Bank equivalent) have loads of land to offload sooner or later.
• Coillte has 1 million acres, some or all of which may be sold.
• The price supports of motorway money and hope value of "selling a site" are well and truly gone now.

Clearly anything might happen to the remaining big land price supports of

1. scheme entitlements
2. forestry premia and
3. tax relief

in which case you would be much better off leasing.

Good luck whatever you do, but I would walk away if the price you're asked means pure hardship.