AN 85-acre council-run farm in Monmouthshire should be sold to the existing tenant, according to a report going before the council's cabinet member for finance Phil Murphy on Wednesday.

The report by management surveyor Gareth King seeks cabinet member approval for the sale of Church Farm, Newchurch in Devauden to the existing tenant for an agreed value.

The report states that disposing of the farm would help to generate the £40 million match funding needed over the next four years to go into the 21st Century Schools pot, and cut the council's maintenance bill.

"The council received an offer to purchase this holding from the existing tenant at the property," Mr King wrote.

"Following negotiations both parties have agreed an increased offer for the holding which reflects a value that is in our opinion market value for the property."

The 85-acre farm includes a mixture of woodland and pasture land.

"The tenancy is a lifetime tenancy resulting in the council not being able to obtain vacant possession in the foreseeable future...(and) being identified by the County Farms Working Group as a non-core holding makes disposal a suitable option," says the report.

But it goes on to warn: "The disposal of this farm will result in further pressure being put on the revenue budget relating to the council farms due to the loss rental income."