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FARM LEASING

  • 31-01-2014 4:22pm
    #1
    R0CKY123
    Registered Users, Registered Users 2 Posts: 2 ✭


    Hi Guys, Im after inheriting 2 small farms, 30 acres each. They have been leased out to the same people with about 10 years with maps and entitlements.1 farm is in a disadvantaged area the other is not. land in both farms is pritty good, about 40 acres were receeded recently. Both leases are up soon so i need some advice on prices per acer?. The same farmers are interested in new leases. I Know that there are changes coming in next year, so i am wondering also about length of lease? Any help would be great as i am new to leasing. thanks


Comments

  • #2
    Username John
    Closed Accounts Posts: 4,237 ✭✭✭Username John


    R0CKY123 wrote: »
    Hi Guys, Im after inheriting 2 small farms, 30 acres each. They have been leased out to the same people with about 10 years with maps and entitlements.1 farm is in a disadvantaged area the other is not. land in both farms is pritty good, about 40 acres were receeded recently. Both leases are up soon so i need some advice on prices per acer?. The same farmers are interested in new leases. I Know that there are changes coming in next year, so i am wondering also about length of lease? Any help would be great as i am new to leasing. thanks

    If 40 out of the 60 were reseeded recently, then they must be taking good enough care of the land.
    Which also means I assume they are good paying tenants... This should be taken into account.

    Check out the tax situation, there are some tax exemptions when leasing farmland.
    http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-corporation-tax/part-23/23-01-23.pdf?download=true

    As for value / acre - you would need to check with a local auctioneer, or whoever manages it in your area. They would know the values best.
    Check out this thread - http://touch.boards.ie/thread/2057135640/1
    You will see there is a big range of prices being mentioned.


  • #3
    Farmer Pudsey
    Registered Users, Registered Users 2 Posts: 6,326 ✭✭✭Farmer Pudsey


    If these lads renting the lads are paying any sort of reasonable rent I would try to deal with them. What sort of rate/acre are they paying. As you are/were not I presume an active farmer I do not think leasing tax relief will apply. I talk to boys renting and enquire what sort of lease terms they might be interested in.

    Are they looking after fences and drains. I imagine that there is no ragwort or weeds on it if they look after it. Remember down the line that the Capital value of the farms will be a lot more after these boys than some other plonkers.

    If you intend keeping the land then a longterm lease might suit these farmers 7-10 years and no headaches for you. Also if you do not live in the area you are better of with these type of clients that some that I know.


  • #4
    R0CKY123
    Registered Users, Registered Users 2 Posts: 2 ✭R0CKY123


    Thanks for the replys, they were paying 120 & 100 which seems low as i think my predessor was too old to really understand, the amount did not change in 10 years. I farmer is good to mind the land but the other is careless with the buildings, sheets of iron missing from sheds, walls knocked etc but he does mind the land. I was told by another farmer to ask at least 160 or 170. I think I will contact an auctioneer to get another view.


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