Agri Land - How can I buy a farm

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Paddyboy0576

Registered User
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Could anyone give me a little advice as i think I need it.
Basically when i was 10 years old my father had to sell 20 acres of our farm due to illhealth and being unable to farm. To this day having to sell this land breaks my fathers heart and it has become the unspoken subject.
The farmer (lets call him farmer X) that bought the 20 acres lives 5km away.He is a nice guy. Now another farm has come up for sale right next door to farmer X. I recently approached farmer X and asked him if I bought 20acres of this farm, would he be willing to swap 'our 20acres' with that 20acres. I explained to him that it is for my father and not my satisfaction that I want to own this land again. He said he would swap no problem and said that he was very impressed with my attempts to get land 'back' for my father. He also knows that my father is suffering from a Parkinsons type illness and like me realises that time is precious....unfortunately.

So its my burning ambition to have a ribbon & scissors at the entrance of that 20acres as soon as possible while my father is still able to appreciate it healthwise.

So now, im looking for your help / advice in relation to;
1. what is the best bank to get credit to buy land from?
2. what is a good interest rate now
3. what stamp duty / tax implications
4. is there a scheme called the 'Farm Consilidation Scheme' or has this run out
5. Do I need a deposit or can we secure raising the money to buy the land on the remainder of the farm (80acres)

I would greatly appreciate your help as it would give me no greater pleasure than to hand my father that scissors to cut that ribbon.....soon please god!
 
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Re: Agri Land - A Field worth fighting for?

You might get more responses if you use a sensible title for your question


You will first have to see if the banks are willing to lend to you. Don't take this as a given in the current climate. The typical rent you will receive on agri land will only generate a tiny return on investment, based on current market prices.
 
Re: Agri Land - A Field worth fighting for?

Not much advice for you but it's a touching story so good luck.

One point I would make is that it's possibly better to buy your land directly from farmer x and have him in turn buy the additional land. I don't think you can just swap an asset so you might end up paying stamp duty twice the way you outlined.
 
Re: Agri Land - A Field worth fighting for?

Thanks ubiquitous for your time. Can yor recomment a more sensible title which as you say would yield more responses. Thanks in advance.
The AIB would 'accomodate' us but as we have been banking with them all out life I can accurately anticipate that the interest rate will be high as opposed to competitive. As regards the return from renting the land, Im told €130-€150 per acre is the 'going rate'. Im not farming myself but i already knew that the return from renting the land would only be a drop in the ocean when it comes to paying for it.
I have a safe job so i will pay for it by working my backside off but this doesnt bother me.

Thanks again ubiquitous.
Paddy.
 
Re: Agri Land - A Field worth fighting for?

Hello Coppers. When i see yor advice written down its of course very logical but hands up - i didnt think of the risk of having to pay stamp duty twice.
im sincerely thankful for taking the time to help me out coppers.

paddy.
 
Re: Agri Land - A Field worth fighting for?

Despite being from a farming background myself I have no sentimental attitude to land ownership. Personally I believe that you should not over-extend yourself financially for the illusory promise of making your father feel better. As Ubi says, the return on agri land is poor unless you are in an established dairy farm for eg ( at least for the last while milk prices have been good, but what future?) so be careful about the price you pay.

Having said that, as far as I understand, the farm consolidation relief is still available ( you can check this directly with revenue if you wish by ringing the stamp duty section) despite there having been a time limit when introduced, I understand it was extended. So that means that if you exchange this holding of 20 acres for another of equal value there will be no SD on the exchange. There will of course be SD on the purchase ( unless you qualify for YTF relief) which is 9% on anything above 150k. And legal fees etc. There would be no other tax implications for you if the market value of each area was the same.

NIB seem to be doing good enough rates at the moment on commercial lending, I would recommend you shop around but certainly get a quote from them.

I've seen 100% loans where there was the added security of additional land ( but is this additional land in your or your father's name?).
 
Re: Agri Land - A Field worth fighting for?

Hello Vanilla,
Thanks for you help. I suppose we all have different sentimental links to land This would mean alot to me and to my parents. Totall accept your advice too about over-stretching financially. Even though I am new to this site I see too many people who have overstretched themselves financially unfortunately and I symphatise with them. Thankfully, I wont be underpressure paying for the land. If I was I wouldnt dare take that risk.
I am an only son so yes I did the Young Trained Farmer Cert...Im delighted to see that the Farm Consolidation Scheme has been extended and will ring the revenue to find out some information.
The Farm is in my parents name but will be transfered to me in time. I suppose given this we would be applying for the loan together (da, mam & myself? cos both parents are over 65
There are no loans secured on the land at the moment so I assume this is a plus.
Any other info would be greatly appreciated.

Again thanks
Paddy


 
Re: Agri Land - How can I buy a small farm back that my father had to sell years ago?

 
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