Rich B wrote: Tue Nov 26, 2024 2:17 pm
ZedLeg wrote: Tue Nov 26, 2024 2:04 pm
Rich B wrote: Tue Nov 26, 2024 2:02 pm
Im not making any suggestions. i’m just asking how £5m farms with zero mortgages and massively reduced machinery/set up costs are saying they only make £20-30k a year.
It just doesn’t make any sense, when new farmers with presumably huge mortgages and epic machinery set up costs are also saying they’re only making £20-30k a year.
Not all farms are owned by big corporates, or who are the people protesting?
I’m clearly dumb or worse than Hitler for asking.
You’re being a bit dense here rich.
You asked who’s buying farms now and as I and Gav said it’s people land banking or looking for land to develop.
The people protesting are a mix of people who’ve owned farms for decades and the aforementioned landbankers mad that their tax dodge didn’t work.
I think you’re reading my questions, then asking a completely different one in your head.
We agree that there “will be some” buying this theoretical average sized farm, so presumably they can be run profitably (unless you’re saying that zero people other than big corporates are buying farms?).
My issue is the conflation in the media and protests that all farmers earn £20k a year from their £5m inherited farms. The whole asset rich/cash poor line we keep hearing.
Even if some farmers are making more money than minimum wage (worth a look
https://www.sustainweb.org/reports/dec2 ... od-prices/), the price of land is still absolutely astronomical in relation to the annual returns.
I suspect that anyone buying smaller farms, who are not large institutions investors, are people like Clarkson and Andy Cato, who have saved or earned £££ from their work, or perhaps sold a London property, and want to buy a farm to give farming a go. If you went into a bank and asked for a loan to buy land to farm, with the sole intention of repaying the loan with farming income, you'd be laughed out the building.