Traditional tenancy rents lag
Traditional tenancy rents lag
FARM rents under traditional tenancies continue to lag behind the changing fortunes of agriculture, so latest figures from Strutt and Parker reveal.
This autumn, levels are being fixed below those agreed 12 months ago. But, for farmers comparing the figures with the amount agreed at their previous review three years ago (typical rolling rent), levels are still up nearly 20%.
Its a paradox that MAFF figures suggest a 20% decline will be seen in net farm income this year says Strutt and Parkers Ralph Crathorne.
Despite this downturn in fortunes, national farming income has risen 88% to £3082m in the six years since 1991. Over the same period, farm rents have risen 45% – from £36 to £53/acre.
Crucial to where rents go now are the strength of sterling, the grain price and the level of recovery in the beef sector, he says.