Wind Turbines

Deano7

Has anyone been approached to put one up? Heard from a friend that they're a scam, is it true?

micraX

How exactly are they a scam.

Sam Kade

Like any contract you need to check out the contract details carefully and get your solicitor to look over it. You also need to add your own terms to the contract.

Deano7

Well they sent round the local lad to make it seem nice and friendly! He offered the contract and I sent it to the solicitor and he said that basically it was a scam and I would be signing the farm away for 9k per year. I was offered 2 turbines and he said that I would only get 18k per year despite them saying that I would get 36k.

TopTec

Deano7 wrote: »

I would be signing the farm away for 9k per year.

Am interested in what you mean by this? Do you actually mean selling your farm?

TT

Deano7

No what he said was that you are entering a 30 year contract with them having the option to renew for another 30 years. They say they will pay your SFP but he said what happens in 2019 when they are reviewed again, your SFP will be lost due to your lands being rezoned as industrial. You will loose all agri relief's like the CGT when a parent transfers land to a child, the tax alone will mean that you will have to sell the land. You cant plough the land and sprays are limited, the state that you are giving 1 hectare of and when they rezone a complete folio of land to allow for cables etc. and the best of all is that your income from the turbine is taxed at 50%.

_Brian

Deano7 wrote: »

No what he said was that you are entering a 30 year contract with them having the option to renew for another 30 years. They say they will pay your SFP but he said what happens in 2019 when they are reviewed again, your SFP will be lost due to your lands being rezoned as industrial. You will loose all agri relief's like the CGT when a parent transfers land to a child, the tax alone will mean that you will have to sell the land. You cant plough the land and sprays are limited, the state that you are giving 1 hectare of and when they rezone a complete folio of land to allow for cables etc. and the best of all is that your income from the turbine is taxed at 50%.

Surely this is simple..

Walk away or negotiate the deal..
People shouldn't be surprised that a commercial company will draft a contract with all the advantage to them?? Why wouldn't they, remember a business deal needs to be legal - not fair.

If they won't negotiate then walk away !

Deano7

But the other lads have agreed to them, so how can you negotiate?

rangler1

Deano7 wrote: »

No what he said was that you are entering a 30 year contract with them having the option to renew for another 30 years. They say they will pay your SFP but he said what happens in 2019 when they are reviewed again, your SFP will be lost due to your lands being rezoned as industrial. You will loose all agri relief's like the CGT when a parent transfers land to a child, the tax alone will mean that you will have to sell the land. You cant plough the land and sprays are limited, the state that you are giving 1 hectare of and when they rezone a complete folio of land to allow for cables etc. and the best of all is that your income from the turbine is taxed at 50%.

Surely it's treated the same as any income, you pay up to 50% tax if you're in the 50% tax bracket.
You can put the land leased for the turbine into a different folio, so your farm is an independent entity and eligible for ag relief.
The land not affected by the lease can be farmed in the normal way, spray, plough, whatever you like.
As brian said you don't have to sign, but it has to be an attractive contract or no one would sign.
€9000 is a lot of money....ask any one that's finishing reps this year

_Brian

Deano7 wrote: »

But the other lads have agreed to them, so how can you negotiate?

Never mind anyone else..
This is YOUR farm your making the deal about.

Rangler has made some good suggestions there that are worth exploring.

Sign the deal because your happy with it, NOT because other lads are signing it.

If your not happy then turn your back on them!

epfff

I have a contract
like most things spectators know much more than me about it
yes it will cause inheritance costs as the piece of land has much greater value than just agricultural land
no the land is not now zoned as industrial
yes you will lose your sfp on the ground used for turbine roads ect as it is no longer in agri use (in my case .75 of an acre some of the guys with more roadways up to 2 acres) but you can still claim reps/aeos on this ground
no their is no restrictions on what I do with the rest of the land on the filio and they only have access on the roadways
I am getting more than 9k per turbine (if you want to know exactly pm me and I will meet with you in person to discuss)
like all income it is subject to tax at the same rate that any income is taxable at

ps very annoyed at a previous poster that claimed to know it all or else was seen for the dope that they are and someone tried to take them for a ride