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Renting small field to a farmer for first time

  • 04-03-2026 03:40PM
    #1
    Registered Users, Registered Users 2 Posts: 30


    Hi all,

    Could use a little help here please. I bought a house a couple of months back (my new primary residence) - and the property included a few acres of field which the previous owners used to rent to a local lad that has about 15 sheep. He tells me that he would like to continue renting the field. He also tells me that he put all the fencing into the field.

    I have no problem continuing to rent the land to him - I don't want to move into a new place and start upsetting everyone! Also, I have nothing to use a few acres for anyway - so why not?

    The internet tells me that rent is about €200-€250 per acre in my area so it's easy to calculate fair rent. But the farmer has told me that the land has "no entitlements" so he can rent the whole lot from me for €250pa.

    Now I have no idea about this stuff. Is he right? Is that a real thing? I played it cool and said I'd better look into it before offering him the contract (I plan to use the standard contract from the IFA website).

    If anyone could shed some light on this for me I'd really appreciate it. He seems like a nice person and I have no problem renting the land to him at whatever the fair price is but I don't want to be played for an eejit either!

    My solicitor didn't really know a lot about this stuff when I was buying but suggested if I did decide to rent to anyone, to include a renunciation clause, a break clause and a right to increase rent annually to keep in line with inflation/local rents.

    Could really use help on determining the rent though please. All advice appreciated.



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Comments

  • Registered Users, Registered Users 2 Posts: 1,109 ✭✭✭Conversations 3


    Ask the previous owner what the agreement was and the rate.



  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder


    Never had the chance to talk to them. And they didn't include any contracts or declaration about this during the sale either unfortunately.



  • Registered Users, Registered Users 2 Posts: 1,109 ✭✭✭Conversations 3




  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder


    So basically no BISS payments available for it - at least that's what google tells me.

    I didn't buy the property for the fields though - they just came with it. But it seems alien to me that some good grazing land would just have less value than the fields all around it, no?



  • Registered Users, Registered Users 2 Posts: 2,650 ✭✭✭J.O. Farmer


    What's a few acres?



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  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder




  • Registered Users, Registered Users 2 Posts: 1,636 ✭✭✭epfff


    Tell him he is right their is no entitlements so you will only be renting him the land. It's naked land and probably worth a bit extra toa young farmer or the right man but you will leave it to him to claim whatever entitlements he wishes thats is his own business.

    The going rate is per acre (200/250) is always excluding entitlements and any entitlements would be extra based on their value.

    Now a parcel that will hold 15 sheep sounds very small so I can't see it been in great demand or anyone traveling a distance to rent. I would actually say it would be a nuisance/just creating work to anyone not adjacent so a parcel that size may be worth less than market value per acre in the area



  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder


    The estate agent doesn't/didn't ever work for me. The previous owners are gone - they are not an avenue of information unfortunately!



  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder


    Thank you. It's about four acres is all. Not huge by any stretch!

    So you think I should offer him the land at market rate then? Because entitlements are more his issue than mine? Do I have you right?



  • Moderators, Society & Culture Moderators, Paid Member Posts: 4,971 Mod ✭✭✭✭Siamsa Sessions


    He could buy or rent entitlements and activate them on the four acres. Might be worth €100/acre to him. As you say, that's his business.

    Your business is to get €200/acre. But you might have to go thru an auctioneer to get that (and they charge a fee), if the 15-sheep man is saying he'll give you approx. €80/acre or €250 for the whole lot.

    My advice would be to phone a local auctioneer and have a chat with them. Go no further than a chat at this stage.



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  • Registered Users, Registered Users 2 Posts: 2,650 ✭✭✭J.O. Farmer


    Sure if it's only a bit and you don't know what you have you can't really charge a market rate per acre.

    The first part of this would have been an appropriate response when you said he was looking to rent the whole lot for €250.



  • Registered Users, Registered Users 2 Posts: 14,322 ✭✭✭✭LambshankRedemption


    The basic rule of economics is, something is worth whatever someone is willing to pay for it. One the one hand you have the farmer offering to pay you X amount. It's 4 acres so no-one is going to go out of their way to rent that land from you. If you turn down the farmer, or ask for too much, you will end up getting nothing and annoying your next door neighbour - not a smart move.

    My advice: keep the farmer onside, accept his offer. 250 a year is not much these days, you can spend it on a nice night away somewhere.

    When it comes to buying/selling or renting property, four main things dictate the market rate: location, location, location and what people are willing to pay. In your case, the location(and size) is not great and you have one person willing to pay money for it, so that has person has set the market rate.



  • Registered Users, Registered Users 2 Posts: 1,636 ✭✭✭epfff


    Yes and no

    Land and entitlements are separate and can be rented separately or together.

    You need land to claim entitlements.

    There is no obligation to claim entitlements on land

    Naked land is worth more because a young farmer starting can use that to claim new entitlements from national reserve.

    It would annoy me someone trying to pull fast one about land worth less than market value because our entitlements. If he said no fencing, poor access, no penning, wet, hilly, poor soil id believe.

    4 acres is small and bother for someone not adjacent but still probably big enough for someone to zero graze or make silage on that's very tight.

    Land value is very much supply and demand so the area figure may not hold true for few miles apart.

    So stand back and look at this with level head.

    It's 250-1000 euro a year before tax. So 125-500 and it's around your house so I think priority here is will he keep this green and will he annoy me with noise and the like. So really all you want here is someone to keep it clean and mind house when you not there etc.

    The country is full of gentlemen and their word is better than any contract. Its also full of chancers that the contract means less than toilet paper. So If you feel you need a contact with this guy as you mentioned in first post you clearly have trust issues before you start so he is not the man for you.

    This guy needs yellow card. How does he keep it looking atm? Has he eneough respect in area to stop others from keeping it clean for you?



  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder


    Interesting take. Thank you. I'm learning here!

    I've learned that entitlements can only be gotten once you have the land - so he'd need the land first anyway. Also, BISS payments are reliant on these entitlements but Greening payments are not - and he will still be able to access Greening payments. So maybe his €250 is an opening offer - more than the market rate. Maybe €60-odd an acre is a touch low given he never mentioned his greening payments. You're right in that €200 per acre might be too much but maybe €100 p.a. could be the Goldilocks Economy… just right!



  • Registered Users, Registered Users 2 Posts: 1,313 ✭✭✭Sleamhain


    I bought a place a few years ago that has an acre of a field attached (only accessible through our private drive)

    I heard that a local farmer used to graze sheep on it with the previous owner, so I have kept the same arrangement after tracking him down. I dont bother charging rent on it, and like yourself wouldnt even have a clue how much to ask for,

    We considered renting it at the beginning and then thought it could backfire looking for money for it.

    To be honest, it suits me - he looks after things, fences the field, the sheep keep the grass down, and he lets me know when he is coming or going with the sheep.

    In return, I have the goodwill of a very friendly neighbour. He was very helpful when a huge tree fell in a storm, and he came with the tractor pulled it out and chopped it up with me. Would have cost me a fortune otherwise and handy as a newbie to the area to know someone helpful with local knowledge that can give a hand when needed.

    Maybe not everyone would agree with that approach, but goodwill from neighbours is worth a lot!



  • Registered Users, Registered Users 2, Paid Member Posts: 10,642 ✭✭✭✭893bet


    what kinda land is it? Good type? Dry and green or covered in rushes?

    what kind land borders it? It it the same farmer ?



  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder


    Thank you. Interesting to read. I have just learned about greening payments subsequent to my earlier posts - and he never mentioned those to me. It's not that I don't trust him though - I thought/just assumed that contracts were the only way to go as he would need paperwork to demonstrate he has the land and therefore can claim things through it. I don't think he's a bad type or a chancer really but no one wants to pay more than they have to.

    So as I mentioned in my previous comment, maybe haggling him up a little bit is a decent way to go. Makes him appreciate my position a bit more and let's him know that I can learn. But also wise not to go too far as he could probably black-ball me in the area easily if I piss him off!

    So maybe €400 for the lot, per annum, could be just the ticket!



  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder


    That makes a lot of sense to be honest. I have thought about just waving him onto the land for nothing for those reasons but don't want to be coming across as condescending or belittling of the money either (not that you do btw - but there was already a financial rental in play here before me so don't want to be too casual or weird about it).

    His brother's farm sides onto my land and so he has access to the field from the far end that way so he defo has benefits to be gained from the arrangement so just waving him on would sell me a bit short too I think.



  • Registered Users, Registered Users 2 Posts: 21,915 ✭✭✭✭Water John


    Is 11 month letting still the thing for this type of arrangement? Breaking the continuity of the contract, even if it's a casual cash deal.



  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder


    It's good land. Green grass, strong borders, slightly sloping downward and south facing, in-and-amongst farming land all around. A bit boggy right down at the bottom at the moment - but there has been tons of rain so expect that will dry up as the weather warms. Lush green grass otherwise.

    I'm actually thinking of sticking a few solar panels on it to cover my own electrickery and then sell the excess off to the market. And I can still have sheep around solar panels too so win-win.



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  • Registered Users, Registered Users 2 Posts: 1,313 ✭✭✭Sleamhain


    Yeah I suppose your situation is a little different then in that case



  • Registered Users, Registered Users 2 Posts: 1,811 ✭✭✭Anto_Meath


    If its a ten acre field its probably worth €250 per acre. But its only 4 acres so wouldn't be that attractive to many, what is access like can you get a tractor & 2000 gallon slurry tank into it? If you cant or you dont want him doing so as its beside your house then its only worth about €500 / €600 per annum.



  • Registered Users, Registered Users 2 Posts: 12 Timeofyourlife


    With this line ……

     He also tells me that he put all the fencing into the field.

    I would avoid him. He is saying rent to me or I will remove the fencing. This lad will be trouble. Establish with the previous owner regarding the fencing what was the deal with this and is it infact true. Might have been agreed he put them in and not rent for first year etc . Also confirm with your solicitor that that fences are you property. Save your future self the hassle and rent to someone else or leave with renting to anyone



  • Registered Users, Registered Users 2 Posts: 446 ✭✭Soc_Alt


    If its no use to you currently and you have no interest in maintaining it in the short term then I would just leave him at it until you decide what to do with it later.

    It would cost you time and money to maintain it yourself when you can get it free from him.



  • Registered Users, Registered Users 2 Posts: 21,915 ✭✭✭✭Water John


    Since it's sheep, he may have added sheep fencing. I wouldn't jump to major conclusions.



  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder


    I hear that and it's probably where I'd like to be, all things considered, but I think even 500 or 600 may be pushing it a bit. He offered about 62p.a. so I reckon 100p.a. is probably good enough. Can stick an review/inflation clause in the contract too so will have options if it's not working out.

    Yup, there's good access - especially for him as his brother has the adjoining farm so he has access down at the bottom from that piece of land.



  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder


    I don't want to get combatitive with him so am not going to go down that road but, if one day, things cease to be then he'd need to be able to prove that the fencing was his - otherwise it stays because it was on the land and part of the property when I bought it. Not today's problem though happily.

    I'd like a good relationship with the guy. He seems like decent shhtick.



  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder


    Well he's getting something out of the deal too. There's something in it for both of us - but it's probably why I won't push too hard on the rent. Up it a bit from his offer but I don't want to piss him off and lose him either!



  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder


    Sorry - post #28 above was for you. The Quote button didn't work.



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  • Registered Users, Registered Users 2 Posts: 30 The Herculean Wonder


    Exactly. And it's not today's problem anyway! Thanks.



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