OUR GUIDE TO A SUCCESSFUL FARM TENDER
Posted on 17 October 2018

Here in brief are some tips to creating the best Tender Application:

Personal Statement

A Personal Statement is a descriptive narrative written by the applicant explaining, the following:
  • Training, 
  • Qualifications, 
  • Work experience,
  • Involvement in clubs and societies
  • Any details land or property which you currently own or rent and advise whether it would be retained if you were successful.

Sell yourself in the best possible like as this gives the Landlord and their agent an overall image of who you are.

Business Plan & Investments in the Farm

The most important part in the whole tender process is viewing the farm and getting a feel for it. It is advised to walk around every field boundary and inspect every building (if you are able too) and to understand the current farming processes and its capacity as not every farm is suited in the intensive pigs or a flock of hill sheep. On inspection you will also be able to see what is needed to be invested in i.e. fencing, fertiliser and lime giving you an idea of what estimated costs are required, this will be in your favour as the Landlord knowns you wanting to stay for the long term.
In your business plan you must provide an overview of each enterprise you are proposing to operate including stock numbers of all types, calving and lambing times, cropping and sale timings.

For each enterprise, give an overview of the farming year and demonstrate how it relates to the farm, such as referencing to the actual building you intend to lamb in, store forage crops or house cattle etc. The key to any tender application is that you must demonstrate to the landlord that you have really thought about your proposal and that you know what you are talking about.

Rent

It is not always the higher tender that wins, it is who is right for the holding and can pay their rent every month without going bankrupt! It is advised to speak to local agents and farmers to analysis current market rents. Compare these farms and values to the subject holding to come up with your figure. Remember, your figure must be PAYABLE and REALISTIC, there is no point placing a high bid for a tender when in 3 years it could be reviewed and not always in the tenant’s favour

Big Changes

As discussed, a few weeks ago the Agricultural Bill has been developed and the current payment scheme which we all know, and love is to finish in 2027. BPS claimed now should be seen as a bonus and should not be relied upon when making your tender bid especially for long term tenancies. Make the point clear that you are aware of the changes to the current scheme and you have taken this into account. This will demonstrate to the Landlord and their agent that you understand what is going on and you have you applied these changes.

Conclusion

In summary, in order to be successful in securing your rented farm in such a competitive market, sell yourself and do not make yourself out to the be greatest farmer in the world as we all know they do not exist. A landlord is looking for someone who is reliable, hard-working and trusting to look after their property but also making it a viable business.

 
If you require any further information or require assistance with a tender application, please do not hesitate to contact either the Tow Law Office on 01388 730095 or the Crook Office on 01388 766676.