Secure tenancy rent reviews bring 27% fall to February 2023

Rent reviews on full agricultural tenancies in England resulted in a 25% fall, to an average of £120/ha, in the year to 28 February 2023.

Defra’s latest rent statistics, based on Farm Business Survey data, also show that, where there was a recorded change to terms and conditions on secure tenancies of this type, rents fell on average by 2% to £186/ha.

A full agricultural tenancy (FAT) is any agreement concluded before 1 September 1995, after which farm business tenancies (FBTs) were introduced.  

See also: Advice on common issues for tenant farmers

FATs usually have lifetime security of tenure, with those granted before 12 July 1984 also carrying statutory succession rights on death or retirement.

The survey period covers from 1 March 2022 to 28 February 2023, during which time the average annual rent across all FAT agreements fell 7% to £165/ha.

This is the lowest level for 10 years. Less favoured area grazing livestock rents fell the most, down 27% to £52/ha. FATs on cereal, general cropping and dairy farms rose, with the steepest rise (19%) on dairy farms, to an average of £238/ha.

The average FAT rent on general cropping farms was up 4% to £191/ha.

Regions

There were some notable differences between the regions, with Yorkshire and the Humber, the North East and the South West seeing rises, while other regions recorded a drop in average FAT rents.

The North East recorded the largest increase, rising 23% to £186/ha. In contrast, the largest fall came in the North West, down 33% to £90/ha.

FBT rents rose slightly, up 1% to an average of £228/ha, while seasonal agreements fell 13% to an average annual rent of £158/ha. At £277/ha, FBT rents were highest in the East Midlands.

Informal agreements grew in number and recorded a 3% rent rise to average £228/ha, the highest level for 10 years.

The total number of farm tenancy agreements in 2022-23 was estimated at 86,500, just 1% fewer than in the previous year.