Conacre

iron man

Morning. Can any of my colleagues please post the pros and cons of conacre please? what are the benefits apart from getting land nut what are the pitfalls. plz

Buford T. Justice XIX

iron man wrote: »

Morning. Can any of my colleagues please post the pros and cons of conacre please? what are the benefits apart from getting land nut what are the pitfalls. plz

The benefits are that you're only tied to the land for 11 months so you can grow and harvest whatever is agreed while you're still within that 11 months.

The downside is you're only allowed access to the land for those 11 months so you can grow whatever's agreed during those 11 months but you have to be gone off it when those 11 months are up. If the weather is bad and you can't get in to harvest then you will have to get permission to get back in again once the 11 months are up. I've seen grass being left for months before being harvested during bad spells of weather and guy taking it having to take the land again to get the grass harvested.

6600

iron man wrote: »

Morning. Can any of my colleagues please post the pros and cons of conacre please? what are the benefits apart from getting land nut what are the pitfalls. plz

There's no benefit compared to a lease. You never know where you are with conacre.
You have to go cap in hand every year to the landlord and negotiate the rent and it will be April before you get into it.
Do drainage, hang gates, fencing, P+K or lime the land and run the risk of not getting the benefit and being put out at the end of the year.
Lease the land for an agreed number of years or leave it with them.

iron man

Luckily, the Landlord is willing to do a 6 year type Conacre Lease. For tax purposes he has to look to be maintaining fences and paying esb etc. Am I right in saying, hill ground is about 50-100 euro per acre (I get the entitlements) but pay the landlord a cut of it.

6600

iron man wrote: »

Luckily, the Landlord is willing to do a 6 year type Conacre Lease. For tax purposes he has to look to be maintaining fences and paying esb etc. Am I right in saying, hill ground is about 50-100 euro per acre (I get the entitlements) but pay the landlord a cut of it.

That sounds right, lease the only way to go, the amount per acre depends on the land and whatever you work out between you. The owner is exempt from tax on up to €18,000 of rent for that length of lease.
https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/leasing-farm-land/index.aspx

FixItAginTomora

Talk to independant advisor or land mobility service or the likes on this. A term lease is just that, if there's a "way out" of the lease it may not be acceptable for tax purposes (for the owner) although that's not your worry. Sounds like you want to be covered from your side that if you agreed a term with owner, you should be there / get benefit for full term.

Young95

What farming enterprise are you hoping to do ?

iron man

Suckler and sheep. 10 cows, 120 ewes...

Water John

For some schemes, you need a lease. Certainly for organic and I suspect for new Reps also. This payment could be a handy part of your income.

Good loser

Taking for 11 months is called conacre.
Taking for one year plus is called a lease.
If you get entitlements money I would expect the lease to cost more par annum.
Possibly if you get entitlements and pay higher rent to him and all the rent is tax free it might suit him better.