Should landlords get rent rises just because commodity prices have increased? This is the question being debated in the FWiSpace discussion forums as part of Farmers Weekly‘s rent review coverage.
The debate was started when one poster, TeslaCoils, said it seemed fair that if prices were higher, then so should rents be.
“Rent per acre should be about a tonne of wheat. That gives a tonne for rent, a tonne for work, a tonne for inputs and a tonne profit excluding single farm payment.”
But this view was quickly challenged with gwdunn responding: “You seem to forget the massive increase in input costs that have occurred, not least for fuel, power fertiliser and labour.
“Prices in the arable sector have only returned in nominal levels to the position they were in during the mid 1990s but costs have risen substantially.”
Johno pointed out that his landlord had not wanted to share the losses of the past five years but as soon as there was a chance of making some investment he was there wanting more rent.
- Read how TeslaCoils responded and contributions from other farmers and growers on the rents discussion thread.