Farm Rents: Spring Briefing 2010
Chris Addison-Scott, partner and head of the firm's rural department outlined his predictions for farm rent reviews at our 2010 Spring Briefing.
Here is a summary of the findings that he reported.
- CKD Galbraith have carried out over 100 farm rent reviews since 2008.
- Many rents have not been reviewed for over 15 years.
- CKD Galbraith are instructed on over 30 farms in 2010.
- Predicted rental rates per acre will vary considerably depending on location, land quality, and level of landlords fixed equipment.
- In % terms rents to increase by 20 – 30 % depending on previous review date.
- Most rents agreed amicably.
- Future stability in rents likely with likely changes to SFP in 2013.
- Increased interest in farm retirement packages as outgoing farmers can cash in SFP Entitlements under current rules.
- Most landlords will re-let land for between 2 and 3 times the former rent passing.
- Rental levels achievable should be:
Hill Farms (North & West Islands) £9 - £11 ewe £55 - £66 cow
Arable/Pasture (North & West Islands) £22 - £50/acre
(East ¢ral)£60 - £72/acre
New Lets under SLDT’s (bare land)£70 - £80/acre