Agricultural land prices. Q for farmers
Discussion
Prices were rocketing last time I looked, as the price of cereal etc went up. But what impact will the current downturn have on land prices, if any? I recall that you were paying about £1500+ an acre and it was going up quickly when I last looked.
With interst rates low I have had my eye on some local woodland, paddock and rough grounds (site of demolished buildings) belonging to a local farmer. About 10 acres in total, split equaly between the 3 uses. He puts cattle on the grass every so often but the woodland and the other land is just being ignored (and has been since I moved here 6 years ago).
He is mainly a cereal farmer and I looked at his accounts at companies house last year. He made a decent living that year but the year before it was touch and go. I am trying to make my approach at a time when he might need the cash. I have no use for the grass yet so would be happy to lease it back to him and I understand there are subsidies which you can agree to leave with the vendor?
I see you're around the SE area. To give you an indication, land around our farm about 40 minutes North of London has been changing hands for around £7000-8000 an acre over the last year or so.
Average arable price across the whole of the UK was £5871 an acre in 2008 ( source). Land prices have rocketed over the past few years. Seeing as how the farmer isn't advertising the land for sale and how farmers tend to overvalue their own land when they think somebody is willing to buy, I imagine you'll be looking at around £7000ish an acre unfortunately...
Average arable price across the whole of the UK was £5871 an acre in 2008 ( source). Land prices have rocketed over the past few years. Seeing as how the farmer isn't advertising the land for sale and how farmers tend to overvalue their own land when they think somebody is willing to buy, I imagine you'll be looking at around £7000ish an acre unfortunately...
Edited by wiffmaster on Sunday 8th February 14:37
Brown and Boris said:
Prices were rocketing last time I looked, as the price of cereal etc went up. But what impact will the current downturn have on land prices, if any? I recall that you were paying about £1500+ an acre and it was going up quickly when I last looked.
With interst rates low I have had my eye on some local woodland, paddock and rough grounds (site of demolished buildings) belonging to a local farmer. About 10 acres in total, split equaly between the 3 uses. He puts cattle on the grass every so often but the woodland and the other land is just being ignored (and has been since I moved here 6 years ago).
He is mainly a cereal farmer and I looked at his accounts at companies house last year. He made a decent living that year but the year before it was touch and go. I am trying to make my approach at a time when he might need the cash. I have no use for the grass yet so would be happy to lease it back to him and I understand there are subsidies which you can agree to leave with the vendor?
Depends where you are in East Anglia area, try £4000 to 7000 per acre for arable, grass land in small parcels depends on the local need for horses have seen up to £10,000 for 1 acre plot if its got building on it then possible redevelopment potential if the footings are still there,woodlads I belive you can get grants for still so he could be claiming for that,small parcels of land always make well above what they are worthWith interst rates low I have had my eye on some local woodland, paddock and rough grounds (site of demolished buildings) belonging to a local farmer. About 10 acres in total, split equaly between the 3 uses. He puts cattle on the grass every so often but the woodland and the other land is just being ignored (and has been since I moved here 6 years ago).
He is mainly a cereal farmer and I looked at his accounts at companies house last year. He made a decent living that year but the year before it was touch and go. I am trying to make my approach at a time when he might need the cash. I have no use for the grass yet so would be happy to lease it back to him and I understand there are subsidies which you can agree to leave with the vendor?
I am South Yorks.
The woodland is pretty inaccessible. He did take some timber out about 7 years ago from an area where he could get machine access but the rest of the site is bounded by water, a sewerage site and a 8 foot high stone wall so the cost of extraction for the remaining timber would be high. His machines made the land in that area pretty unuseable; deep tracks and ruts and he uoset the locals by removing the cast iron railings and not putting them back.
The grass is good, it has cattle proof fencing, water and an access road. I could exclude this piece as it is rather too accessible in case travellers decide to pitch up but having it makes the packae a tidier shape and reduces the chances he might object when I try to use the rough ground later. I woukld expect him to put a claw back in if it ever sold for developmnet but it is on the edge of a conservation area so that is unlikely.
The other land is rough ground as a result of tipping of s
g from the local founderies in the 1960's and being allowed to grow wild since. I think he does a lit of rough shooting on it a few times a year but it has the footings of old houses and farm buildings, fallen trees etc.
The woodland is pretty inaccessible. He did take some timber out about 7 years ago from an area where he could get machine access but the rest of the site is bounded by water, a sewerage site and a 8 foot high stone wall so the cost of extraction for the remaining timber would be high. His machines made the land in that area pretty unuseable; deep tracks and ruts and he uoset the locals by removing the cast iron railings and not putting them back.
The grass is good, it has cattle proof fencing, water and an access road. I could exclude this piece as it is rather too accessible in case travellers decide to pitch up but having it makes the packae a tidier shape and reduces the chances he might object when I try to use the rough ground later. I woukld expect him to put a claw back in if it ever sold for developmnet but it is on the edge of a conservation area so that is unlikely.
The other land is rough ground as a result of tipping of s
g from the local founderies in the 1960's and being allowed to grow wild since. I think he does a lit of rough shooting on it a few times a year but it has the footings of old houses and farm buildings, fallen trees etc.If it had a house on it and has water and electric close by then it has the poss for redevelopment have a word with your local planning authority to see if they might grant redevelopment wont cost you nowt ,how big is the sewage works nearby is the water you mention on it boundaries a running river is it good for fishing is the surrounding countryside hilly
Just because the land doesn't look like it's being used to you, doesn't mean it's not of some worth to him.
For example, the woodland will no doubt give him many brucey bonus points for his SFP application which he'll use to get the average up over the rest of the holding. Similar with scrubland - never gets ploughed/cultivated - therefore more points.
In small blocks, land used to go for anything up to £10k or £12k for horsey people. Not sure how much cash is floating about now though.
Also, don't be fooled by how much his company makes. All the household bills will no doubt be lumped in with those of the farm, including any new 'works' vehicles and fuel. So even though it may look like there's not much to take out of the business, he'll probably not be too worried (especially given the cost of borrowing at the mo).
For example, the woodland will no doubt give him many brucey bonus points for his SFP application which he'll use to get the average up over the rest of the holding. Similar with scrubland - never gets ploughed/cultivated - therefore more points.
In small blocks, land used to go for anything up to £10k or £12k for horsey people. Not sure how much cash is floating about now though.
Also, don't be fooled by how much his company makes. All the household bills will no doubt be lumped in with those of the farm, including any new 'works' vehicles and fuel. So even though it may look like there's not much to take out of the business, he'll probably not be too worried (especially given the cost of borrowing at the mo).
TIGERSIX said:
If it had a house on it and has water and electric close by then it has the poss for redevelopment have a word with your local planning authority to see if they might grant redevelopment wont cost you nowt ,how big is the sewage works nearby is the water you mention on it boundaries a running river is it good for fishing is the surrounding countryside hilly
The sewerage works are a small local compound about 40 yards x 20 and the water is a run off pool for the local storm drains; about 3 feet deep and devoid of life as far as I can see although it has bullrushes etc so can't be too bad. The buildings have been ruins since the 1960's when the house on the site was demolished after a fire (mainly bullbozed into the cellars I understand). I guess any services on site have long gone and the water feeding the cattle may well be a spring because they used to pipe it up to the house in its day. Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff