ONLY one in five rents open to renegotiation this year have been reviewed, says land agents Carter Jonas.
The company has completed 50 reviews covering about 5000ha (12,350 acres) with a handful going to arbitration. Completed reviews saw rents reduce by 13.6% for traditional (1986 Act) tenancies and by 1.9% for farm business tenancies, says the companys Will Staunton.
Rents remain "remarkably steady" given the pressure on commodity values and further cuts in support payments scheduled under Agenda 2000 reforms.
The Tenant Farmers Association says reductions are inevitable but it expects rents to come down further than the Carter Jonas report suggests.
The companys figures put rents for cereal land at an average of £57/acre for traditional tenancies and £125/acre for FBTs. For arable/stock farms the figures are £59/acre for traditional tenancies and £57/acre for FBTs.
But competition for cereal and mixed farm FBTs have seen new tenders increase marginally as producers look to increase farmed area to justify machinery and other overheads, adds Mr Staunton. *