Advice on Leasing out my Land

Headshop

Hi,

I'm looking for some advise on leasing land, as I'm considering leasing out most of my farm and buildings.
I've been farming part time drystock for the last few years, but with working full time and a young family, I finding it difficult to find the time, to do things properly.
I'm thinking of leasing out long term and maybe return to it in the future when things quieten down.

I intend to lease out 80 acres of land and slatted accommodation, while hanging on to 15 acres beside the house, that I intend to keep farming.
I'd like to hear from farmers/land owners who have some or all of their land rented out as to what is the best way to go about it and the possible pit falls.

I'm based in the West, and the land is of good quality, all in one block, mains electric fence, mains water, paddocked with slatted accommodation for 120 cattle.

Whats the best way to advertise/source a good client without having everyone in a 50 mile radius coming to kick the tyres ? Should I get an auctioneer ?
What conditions should be put into the lease agreement to ensure the place is looked after ? How can these conditions be enforced ?
Do I need to get a solicitor involved, when signing the lease ?

Finally, what sort of price per acre and price per slatted shed bay would I be looking for.

Thanks for reading and apologies for the long winded post.
Any advice/feedback would be appreciated.

Regards,
Headshop

ravima

I'd forget about holding onto any part. What age are you? There are tax advantages if you are over 50yrs old and leasing out the land. You have fenced land with slatted unit, I'd be looking for in the region of €200 per acre, with whoever rents to clear out the tank at end of year!

ihatewinter

It might be worthwhile to lease shed with land. You might get a bit more per acre and it could wean out the land destroyers

Personally I would kill for a shed on leased land instead of dragging them all home.

Bullocks

Whereabouts in the west are you and are there maps /entitlements with the land ?

joejobrien

Get a fair price but dont go after the highest.........there may well be trouble in the future????? Consider the thought of a lad that will wreck your land, destroy your hedges, your neighbours, you get my drift???
I WOULD GIVE CAREFULL CONSIDERATION TO GOOD NEIGHBOUR OR a RECOMMENDED FARMER KNOWING yOU WILL GET YOUR LAND BACK EVERY BIT AS GOOD OR BETTER AS YOU GAVE IT.
Best of luck eitherway

Username John

ravima wrote: »

I'd forget about holding onto any part. What age are you? There are tax advantages if you are over 50yrs old and leasing out the land. You have fenced land with slatted unit, I'd be looking for in the region of €200 per acre, with whoever rents to clear out the tank at end of year!

That's changed now, there is no age limit on qualifying for tax exemption, as long as the land is let for long enough.

Also - OP - do you have a SFP? If you do, it migh be a good idea to hold onto em and stack em onto the 15 acres (it's not stacking as such, but the 15 acres would be used for the base payment calculations)

Username John

joejobrien wrote: »

Get a fair price but dont go after the highest.........there may well be trouble in the future????? Consider the thought of a lad that will wreck your land, destroy your hedges, your neighbours, you get my drift???
I WOULD GIVE CAREFULL CONSIDERATION TO GOOD NEIGHBOUR OR a RECOMMENDED FARMER KNOWING yOU WILL GET YOUR LAND BACK EVERY BIT AS GOOD OR BETTER AS YOU GAVE IT.
Best of luck eitherway

I would agree...

But at what price? That's the difficult one to work out...

Headshop

Hi guys,

Thanks for all the posts.
Just a quick replay to some points raised.

I would hang on to a few acres for a few of reasons -
- for the benefit of the kids, to have them involved with farming in a small way
- to keep myself in touch with the farming world, with a view to taking the land back in the future
- for tax purposes, continuing farming would allow me to write off some expenses against it

Regarding entitlements,
I would probably stack them on the land I'm retaining, but am not sure exactly how thats, gonna work out, need to get some advice on that.

As regards letting to a good neighbour/recommended farmer (finding a suitable client).
I agree with what your saying regards not going for the highest price, but getting someone who will respect the place.
Getting the right client is a big concern to me, and something that I think prevents a lot more people from renting out their land.
Yes, you can put conditions in the lease, (like emptying tanks when finished, disposing waste plastics, etc) but how do you enforce them ?
Getting a deposit from the renter would be some sort of guarantee that they would look after the place.

Regards,
Headshop

Markcheese

I suppose it'd be possible to write most things into the lease including a timetable for works(emptying tanks,clearing rubbish, trimming hedges,fencing) and inspections and a break lease clause if works are not done to satisfaction-(might be worth having a teagasc consultant do a farm report,listing condition,soil testing ,schedule of works expected ect.
And an arbitrator ,in case things go wrong -and there's an argument over condition -

epfff

Can you stack in 2015?

Username John

epfff wrote: »

Can you stack in 2015?

It's not so much stacking...
As I understand it - the minimum number if ha from your 2013 or 2015 will be used to calculate the new base payment for hectare - which will be the new SFP unit as such.

So if you have less ha in 2015, your existing entitlements will be divided by this number of lesser ha.

Not sure I explained that very well?

Justjens

Go to a trustworthy auctioneer who knows his good clients, and how much land is making, and as previously stated don't go for the highest price.

You can put anything in a lease, but get your solicitor to write it up (renter pays), enforcing is another issue so it's best to get a good tenant.

Don't think there are too many willing to part with a deposit.

I'd be wary of an opt out clause in the lease if you are renting long term to avail of the tax relief, with enough conditions in the lease you should be able to secure a good tenant.

And have the place right before renting, hedges cut and well fenced, so the tenant has a standard to maintain.

Don't forget about electricity and water......

Username John

Just read this article...

http://www.irishexaminer.com/farming/general/eu-objects-to-irish-land-lease-tax-relief-proposals-305683.html

Not sure what it means for leasing, and tax...

kowtow

Username John wrote: »

Just read this article...

http://www.irishexaminer.com/farming/general/eu-objects-to-irish-land-lease-tax-relief-proposals-305683.html

Not sure what it means for leasing, and tax...

It means the EU object to income from land leasing being tax free.

This must be that economic sovereignty we got back at work.

Headshop

Thanks for that link, UsernameJohn.
I understood that these tax breaks were already inplace, but just increased in the last budget.
Will have to keep an eye on it.

Regards
Headshop