There's a lot of interest among farmers and landowners in long-term leasing of farms. The main drivers have been the income tax relief available for the landowner, plus the ending of milk quotas.

A 327ac farm has become available to lease in Co Wexford, near Duncormick. The leasing agents handling the offer are Brady Group.

This farm is predominantly in grass and is set up for beef finishing, with extensive cattle sheds.

The location is The Ring, Killag which makes it 20km South of Wexford town and 4km North of Kilmore Quay. It's 3km from the sea.

The farm is all in one block but divided in two near equal halves by a local road, the L3056.

The agents say that the soil type is sandy marine alluvium with little stone and good depth. The farm has a southerly aspect.

The land is at sea level. Much of the land in this area is at sea level and benefits from the management of the water table on the Wexford slobs which is carried out by the OPW, with water pumped out to sea.

This slatted unit is 16 bays long.

The farm has good farm roadways. This is partly thanks to a wind farm built some years ago on the land. The ground under the wind farm is not to be included in the lease.

However, a planning condition of the wind farm is that 6ac of beet tops be left on the ground over the winter months for migratory swans that are traditional visitors to the Wexford coast.

There are three cattle yards on the farm, two on them on the southern block. These two sheds have housing and slurry storage for 750 cattle. This includes a 16 bay double slated shed plus loose sheds.

All sheds date from the 1970s but are in working order.

There are the open silage pits, a machinery shed, general storage sheds and a weigh bridge.

The sheds on the northern block are smaller with lower capacity. They have been disused for a while but are usable, the agents say.

Brady Group say that the yards are primarily suited for beef cattle but could be adopted for pigs, poultry or dairying.

The main yard has silage pits and slurry storage large enough to service the extensive accommodation.

The landowners are proposing to lease the land for a 15-year term running from 1 January 2021 to 31 December 2036, but they are open to discussing a longer lease term if the leasee were interested in making a capital investment on the farm. This would typically arise if a leasee wanted to convert a farm to dairying. The landowner will also consider splitting the farm into two smaller units for more than one leasee.

The guide leasing rent for this farm is €225/acre for 327ac per year which equals total yearly lease rent at €73,575. Lease is to be paid on the 20th of every month in 12 monthly instalments, by standing order.

The farm has entitlements to EU Basic Payment with a value of approximately €60,000. It is proposed that these entitlements will be leased by the leasee and repaid to the landowner for as long as the payment schemes operates. This payment is in addition to the €73,575 total yearly lease payments on the farm.

Lease

A reviews of the terms of the lease will be carried out after five years and after ten years, ie on 1 Jan 2026 and 1 January 2031.

As part of the leasing process, Brady Group will carry out financial vetting of the potential tenants. This is to protect the landowner and ensure the farm is leased to a farmer with a good financial record. The pout other tential leasee will have to produce financial accounts for 2019, 2018 and 2017 and provide participating codes from ICBF and/or Teagasc eProfit Monitor, where relevant. References from a main bank and accountant will have to be provided confirming suitability for the project.

Mike Brady of Brady Group says that there has been keen interest already in this farm. “We have sent out 25 brochures and have offers of up to €225 per acre already. Interest is mainly from tillage farmers but other farmers are looking as well.”

He noted that for a farm already set up for dairying the asking price would be considerably higher. “The price bracket here is for tillage or conversion to dairying.”