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Thread: Tenant farmers, do you put whole rent against crops margins with other income?

  1. #1
    Junior Member
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    May 2016
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    Hertfordshire
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    Tenant farmers, do you put whole rent against crops margins with other income?

    Just doing a few loose sums as the last of our grain is traded to see how we faired last harvest. We're mixed tenant farmers with a lot of diversification (sub-lets, restaurant, farm shop) So I always find it hard to know where to pitch our fixed costs, like rent? Some say put it all against the arable but then I wouldn't pay that rent on one farm if it wasn't for the sub-letting potential. Then again I don't want to sugar coat the arable?

    Id be interested to know how other people do it?

  2. #2
    Senior Member
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    Feb 2013
    Location
    North Yorkshire
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    194

    Re: Tenant farmers, do you put whole rent against crops margins with other income?

    Thats an interesting one. Its fair for each enterprise to carry some rent, because none of them could operate without premises.

    Could you divide the rent proportionately, according to the turnover of each enterprise?

  3. #3
    Senior Member
    Join Date
    Feb 2013
    Location
    Holderness
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    723

    Re: Tenant farmers, do you put whole rent against crops margins with other income?

    This is an nteresting question, many of us find ourselves in a similar situation.
    It demonstrates the whole farce of how agriculture structure has become.
    Gove has made the grand gesture of getting rid of payments on the basis of land only. In actual fact the only people who will be hurt by this are the smaller acreage people. For years now people have diversified because ever decreasing commodity prices, partly due to subsidy payments, in order to carry on living on the farm they love.
    This has led to all sorts of little problems. For instance we have a situation where we are likely to have to pay a large amount of VAT, because unbeknownst to us the emulations had changed.
    In our case if we were to post further charges against the arable it would merely increase the arable loss.
    Jack Caley

  4. #4
    Senior Member
    Join Date
    Feb 2013
    Location
    Bury St Edmunds
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    928

    Re: Tenant farmers, do you put whole rent against crops margins with other income?

    it is never going to be an easy division if you are trying to be exact. However you said you are paying a high rent for one farm because of the diversification on that farm.
    Find a Base line for those areas paying rent which cannot be set against any other income, then adjust all across to this figure and attribute the extra rent to the diversification schemes.
    This is an important thing to do as in the future you may have taxation issues if some division is not done.
    Ixworth Solar Farming Ltd.

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