Farm Rents

Farm rents showed further increases in the 2014/15 year.  It is the 7^th year in a row that values have increased.  The latest DEFRA statistics on farm rents in England reveal the average rental value under Agricultural Holdings Act (AHA) tenancies rose by 3% between 2013/14 and 2014/15.  For Farm Business Tenancies (FBTs) the average figure increased by 5%.  The data is collected via the Farm Business Survey.  It is slightly historic as the Survey takes some time to undertake.  The figures are for the 2014/15 year (roughly Feb toFeb).  They are shown as ‘2014’ in the table below. 

General Cropping rents remain the highest for both AHA tenancies and FBTs, although AHA rents in this category have fallen slightly from year-earlier levels.  FBT rents for General Cropping are considerably higher than the other categories as these will include a large number of short term potato and vegetable growers who will be prepared to pay high rents.

The average rent paid under Seasonal Agreements (likely to be largely grass lettings) in 2014 was £142 per Ha – a 12% increase on the 2013 figure.  Full results can be found at https://www.gov.uk/government/statistics/farm-rents

The results from this Survey show the amounts actually being paid by farm businesses in England.  This will include some lettings that are not at full market value – for example lettings within families.  Therefore the figures may not correspond to some of the ‘headline’ rates often quoted.  These usually relate to situations where new land is being let, or there is a review.  The historic nature of the Survey means that current trends are not picked up.  There is strong (anecdotal) evidence that rents are now falling, both for AHA and FBT lettings.  Perhaps not surprising given the economics in many sectors.  However, tender rents, especially in the cropping sector, still often remain above levels that can be economically justified.