Farm Rents

The latest DEFRA statistics on farm rents in England reveal the average rental value under Agricultural Holdings Act (AHA) tenancies rose by 5% between 2010 and 2011.  For Farm Business Tenancy (FBT) rents, the average figure increased by 11% compared to year earlier levels.  The figures are collected via the Farm Business Survey and relate to the 2011/12 year (Feb to Feb).  They are shown as ‘2011’ in the table below. 

All rents have increased reflecting higher commodity prices and better livestock prices during the period.  General cropping rents remain the highest for both AHA tenancies and FBTs, although AHA rents in this category have remained the same as 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 growers who will be prepared to pay high rents.

The average rent paid under Seasonal Agreements (likely to be largely grass lettings) in 2011 was £127 per Ha – a 3% increase, considerably less than the 25% increase seen between 2009 and 2010 levels.  Full results can be found at http://www.defra.gov.uk/statistics/files/defra-stats-foodfarm-farmmanage-fbs-farmrents2011-130307.pdf  

As the rent data is now collected via the Farm Business Survey rather than a separate survey, it is rather historic.  When the figures for 2012 are published in 12 months’ time we would expect further increases to be reported.  This may prove to be a high point in terms of rentals, coming after the very profitable 2011 year.  We know that some very high rents were agreed for the 2012 cropping year (especially FBT tender rents).  After the fairly disastrous 2012 year however, there appears to be a general weakening of values.