15 November 1996

Rents climb to zenith

FARM rents have increased more in the past 12 months than at any time in the past 10 years, according to surveyors Carter Jonas.

The firms latest survey shows rents across all sectors under the 1986 Agricultural Holdings Act rose by more than 31%. Higher farm profitability was the reason.

Together with buoyant land values, it makes agricultural land one of the best-performing investments, says the firm. But rents are now expected to stabilise.

Land agent Strutt and Parkers latest data, meanwhile, shows Michaelmas rents to have typically risen by 35%. But for farm business tenancies, the figure was 22%. Average arable rents stand at £63.50/acre, compared with over £100/acre under FBTs.

&#8226 Gloucestershire councillors have decided to peg dairy farm rents in the county for another 12 months due to the BSE crisis.n