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.

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 &central)60 - 72/acre

New Lets under SLDT's (bare land)70 - 80/acre