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Thread: Farm To Let

  1. #121
    Till Seeder
    Guest

    Re: Farm To Let

    Quote Originally Posted by Massey Driver View Post
    Fair enough but on that basis of rents going ever higher at what point does the money run out? I.e. ok if you can afford to loose 10 or 20 pounds an acre but with ever spiraling rents who would justify loosing say 50/acre just so that they can say they are big farmers 'spreading their costs'
    Spreading losses over the whole acreage demonstrates one of the basic laws of economics ie the law of diminishing returns.

    If this is repeated continually,the losses,due to high rents,continuing to be spread a point will be reached when all the operation will be in loss.

    Its akin to Mr Micawber hoping ''something will turn up''

    As has been already said,with rents getting this high,you might as well buy land and 'set' the rent and let inflation reduce it for you.

    Just the problem of the deposit,no problem to a large farmer I would have thought.

    Or have I got it all wrong and farming doesn't work to the normal rules of economics.

  2. #122
    clover
    Guest

    Re: Farm To Let

    Quote Originally Posted by Till Seeder View Post
    Spreading losses over the whole acreage demonstrates one of the basic laws of economics ie the law of diminishing returns.

    If this is repeated continually,the losses,due to high rents,continuing to be spread a point will be reached when all the operation will be in loss.

    Its akin to Mr Micawber hoping ''something will turn up''

    As has been already said,with rents getting this high,you might as well buy land and 'set' the rent and let inflation reduce it for you.

    Just the problem of the deposit,no problem to a large farmer I would have thought.

    Or have I got it all wrong and farming doesn't work to the normal rules of economics.
    Correct.And assuming the original 8000 acres is,atleast in part,also rented we must assume that the farmer will be expected to pay a rent more in tune with the 600 acres when it is reviewed.

  3. #123
    Russell B
    Guest

    Re: Farm To Let

    [QUOTE=Till Seeder;936543]Spreading losses over the whole acreage demonstrates one of the basic laws of economics ie the law of diminishing returns.

    If this is repeated continually,the losses,due to high rents,continuing to be spread a point will be reached when all the operation will be in loss.

    Its akin to Mr Micawber hoping ''something will turn up''

    As has been already said,with rents getting this high,you might as well buy land and 'set' the rent and let inflation reduce it for you.

    Just the problem of the deposit,no problem to a large farmer I would have thought.
    A dairy farm has just been let near to me and the ingoings(which have to be written off in the first ten years)are over 200k.Add to this the levels of rent that are reportedly been offered and to my mind ,even if you cannot farm the enterprises that you might wish to,it would be better to buy a farm and at least know that however you pay for it,it is yours to keep.

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