Bogland Rental

wellsir

Hi all,
I have recently inherited a 75 acre farm with just over 12 acres of it being raised bog. Its part of a much larger bog and I own one small corner of it. It has been rented to a guy for years that has been cutting those large lumps of peat from it for export.

There has been no formal contract over the years for my corner and I want to formalise it. Trouble is I have no idea what I should charge him. The fee he has been paying is nominal really.

Its well developed enterprise with large machinery, conveyor belts that stretch for hundreds of metres and so on.

The farm itself is likely to achieve over 225 per acre for 10 year lease.

Any guidance would be great.
Thanks

noelogara

Bogmen are rare individuals expecially those who are industrious enough to get money out of bogs so try to hold on to him. Can you say what rent you get currently and I will be able to advise. He must put up with the vageries of the weather which can leave him out of pocket in bad years so in a deal for rent tell him you will forego it completely if he fails to get a crop and that should encourage him to give a fair rent.

wellsir

Thanks for reverting. Bogmen making money are indeed rare individuals but the ones that are seem to making a tidy sum, if his new 152 is anything to go by. The sheer number of trucks taking peat out to export to holland is running at about 3 per day at the moment with stacks of peat 3 and 4 stories waiting to be moved.
He is currently paying 4k and that has been the figure for 15 years I would say.

djmc

I would say thank you very much.
A lot of farmers are sitting on bog making nothing and would take the hand off him if offered 4 k rental for 12 acres.
If he is making money fair play to him long may it continue as it is helpful to you too.
He could buy his own bog and pay off investment over a few years.
You could chance pleading your case asking if he might consider doing anything for you as times are hard at the moment but I wouldn't rock the boat.
If all the peat is removed your land would be worth more also once reclaimed and reseeded .
Most lads might only get less than 50 euro an acre for bogland for rough grazing.

wellsir

Thanks for that. Yes when you put it like that its hard to see anything else in it. But I do need to find out what exactly is planned for my section and see from there.

ruben37

4k a year for 12 acres of bogland sounds a bit much to being honest. A friend in Longford recently leased his 19 acre bog long term with good road access for a tad less per year. The guy who leased the bog has plans for a similar project to the one being carried out on your bog, the bog was also on the market for well over a year with little or no interest I wouldn't rock to boat with the tenant you have. Comments such as "if his new 152 is anything to go by" only show a touch of green eyed monster. Along with the comments about the number of trucks coming and going appears if you have been stalking this guy not good in any way at all, in my opinion.

Dickie10

on this subject well kind of , i have 7 acres of bog where i cut my own turf and spreadbank there is around 5 acres of scrub not on the bank though with shrubs, trees and rough grass, its not fenced but i know where the boundary is and have maps, is there any payment i can get on this from the EU, currently not getting any payment on it

Capercaillie

If the raised bog is a SAC you can get compensation/free turf if you don't cut it.

djmc

Dickie10 wrote: »

on this subject well kind of , i have 7 acres of bog where i cut my own turf and spreadbank there is around 5 acres of scrub not on the bank though with shrubs, trees and rough grass, its not fenced but i know where the boundary is and have maps, is there any payment i can get on this from the EU, currently not getting any payment on it

That's a very hard question to answer as there is a lot of regulations around that type of land and you would have to jump a lot of hoops to get anything. It may not be worth the return.
Ask teagasc advisor to look at it.
Scrubland or bog not eligible for payments if its spa or sac you can't clear scrub or reclaim plough it.
In any event you will need a herd or flock number and graze with animals
If you are able to claim something id think maybe a few hundred max.

noelogara

wellsir wrote: »

Thanks for that. Yes when you put it like that its hard to see anything else in it. But I do need to find out what exactly is planned for my section and see from there.

well after two months waiting you got a heap of advice and raised the value of Irish bogland.
Bog will never look so forbidding to farmers again if they read this thread. DJMC gave you sound advice.

barnaman

What was the bog valued at for CAT purposes for Revenue and was AG relief obtained on it?