Rent reviews show big rises for 2013

Rent reviews by Smiths Gore in 2013 show the average Agricultural Holdings Act (AHA) rent review rose by 21% from £64 to £75/acre, with the largest increase on stock farms.


The firm conducted 483 reviews in 2013 on almost 128,000 acres. Arable Farm Business Tenancy (FBT) reviews produced the largest increases, rising by 38% to an average of £131/acre. In Scotland, arable rent reviews produced a new average of £57/acre (up 15%), while Scottish dairy farm rents reviewed rose by 4% to £39/acre.


The TFA’s figures for England and Wales in 2013 were broadly similar to those of Smiths Gore, said secretary George Dunn, with AHA reviews resulting in increases of about 20% and those for FBTs producing a rise of 30%.


“However, it’s important to understand these figures refer to rent settlements in the 12 months to autumn of last year,” he said.


“The rent increases reported reflect an improvement in farm profitability overall between the three years from 2010-13. The same cannot be said for reviews taking place this year, and we are therefore expecting many more standstills in 2014.”


The FBT market was worrying, with rents tendered seeming to lack any resemblance to reality, said Mr Dunn.
































































































































New rent (£/acre)


Old rent (£/acre)


Percentage change


Number of reviews


Acres reviewed


AHA


Arable


£82


£68


22%


274


76,131


Dairy


£81


£70


17%


92


21,468


Livestock


£55


£45


29%


186


79,040


Mixed


£76


£66


17%


281


65,017


AHA average


£74


£62


21%


833


241,657


FBT


Arable


£123


£84


46%


136


24,580


Dairy


£95


£81


18%


40


8,233


Livestock


£78


£62


31%


161


24,576


Mixed


£93


£76


25%


114


19,888


FBT average


£97


£74


33%


451


77,277


Scottish tenancies


Arable


£66


£58


13%


17


4,067


Dairy


£45


£43


6%


16


4,727


Livestock


£24


£21


16%


115


78,260


Mixed


£44


£38


15%


39


12,757


Scottish average


£34


£30


15%


187


99,811


Overall average


£76


£62


24%


1,471


418,745


Source: Smiths Gore