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Advise on renting farmland

  • 25-02-2012 5:55pm
    #1
    cooper101
    Closed Accounts Posts: 4 ✭


    Hello everyone. First time poster. This seems like a very active forum on farming and I was hoping some may be able to advise. We are based in sligo and my wife's uncle has a 60 acre farm. He's not a young man and a neighbour of his wants to rent his farm. I've read on this forum that €140-€160 would be going rate. Not to cause any upset and be fair, I wanted to check what sort of rates he should be looking for the farm land, yards and cattle sheds with the exception; he does not want to part with his payment or disadvantage aid as he hopes his son will return from oz. Neighbour is fine with the uncle keeping the payments and his herd number. Any advise welcomed.


Comments

  • #2
    zetor 4911
    Registered Users, Registered Users 2 Posts: 431 ✭✭zetor 4911


    Welcome Cooper 101.
    The rate per acre for renting land can vary and it is very difficult to say if 140 to 160 is a fair price it will depend on the quality of the land.
    Based on what you say about your uncle in law wanting to hold onto his payments it is important to realise that only the person farming the land is allowed to draw down these payments. Whoever rents the lands has to put the land on his/her SPS application and they draw down the payments any other way is in breach of the rules and in light of recent press coverage doing it any other way could put the payment at risk and leave both parties open to penalties. The farmer renting the lands can draw down the payment and then passed them back to your uncle in law.
    Hope this is of help.


  • #3
    cooper101
    Closed Accounts Posts: 4 ✭cooper101


    Thanks for the quick reply. This does make sense. I'll let him know. Do you know if someone else is claiming the payments, would this mean he would lose his herd number or not be allowed to get payments in the future (or transfer these to his son) ? I know this is the most important thing to him.


  • #4
    zetor 4911
    Registered Users, Registered Users 2 Posts: 431 ✭✭zetor 4911


    If he is not farming he would lose his herd number.
    Post CAP reform entitlements will go to the active farmer so the only sure way to get the new entitlements is to be farming for the next few years.


  • #5
    cooper101
    Closed Accounts Posts: 4 ✭cooper101


    zetor 4911 wrote: »
    If he is not farming he would lose his herd number.
    Post CAP reform entitlements will go to the active farmer so the only sure way to get the new entitlements is to be farming for the next few years.

    Thanks for the information zetor 4911. I get the impression he may have known this already as he was not to interested when I told him. He might stay at it on a smaller scale for the next few years.


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