Farm Rents Increase

Farm rents have increased for the 6^th year in a row. The latest DEFRA statistics on farm rents in England reveal the average rental value under Agricultural Holdings Act (AHA) tenancies rose by 5% between 2012 and 2013.  For Farm Business Tenancies (FBTs) the average figure increased by 11%.  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 2013/14 year (roughly Feb to Feb).  They are shown as ‘2013’ 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 2013 was £127 per Ha – a 9% increase on the 2012 figure and back to the level seen in 2011.  Full results can be found at https://www.gov.uk/government/statistics/farm-rents

Regionally, AHA tenancies in the North East and South West saw the biggest increases whilst the North West saw rents fall by 7%.  For FBTs the East of England saw rents rise by 23% to £250 per hectare, East Midlands rents fell by 5%.

The results from this Survey show the amounts actually being paid by farm businesses in England.  A number of agents produce reports on the rental market, but these tend to focus on rent levels where new land is being let, or there is a review.  For example, Smiths Gore report that rental levels in the year to 31^st October 2014 increased 24% where there was a review or new let.