Review grass keep rents

GRAZIERS MUST recalculate the value of taking on grass keep and look to renegotiate rents with landlords if figures do not stack up ahead of submitting IACS forms for 2005, warns Promar senior consultant Andrew Connah.

“What gets put down on this next IACS submission will determine the amount of single farm payment received in future years,” he told producers attending an SFP workshop near Shrewsbury, held jointly by Promar and accountants Dyke Yaxley

“For each parcel of rented ground calculate whether the extra income is sufficient to justify the rent and if not, renegotiate now.”

Graziers had to bear in mind that industry figures suggest income from beef, sheep and dairying could be destabilised by removal of direct supports, he warned.

In some eastern counties graziers are taking on grass keep free of charge.

This is on condition they keep the land in good agricultural and environmental condition (GAEC) while landlords take the historical element of the SFP in lieu of rent.

“This won‘t be the case in all areas, but modest rents are being agreed,” he said.