Rents on the rise despite wet year playing havoc on farms

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The weather in 2012 might have been pretty awful but this has not stopped a continued rise in the rents paid for Scottish farms. According to leading property consultants, Smiths Gore, an analysis of rent rises in the past year shows an increase of 12 per cent

According to Dr Jason Beedall, of Smiths Gore, the analysis which is based on 62 rent reviews, re-lettings and new lettings and which covered some 34,000 acres showed arable rents going up by 13.4 per cent and livestock ones by 12.4 per cent.

The 2012 figures show the lowest increase in the past years which was topped by a 21.4 per cent in 2008.

Commenting on the figures, Robert Gladstone, also of Smiths Gore, said “We have had a pretty shocking summer and autumn but a lot of the reviews were carried out before the full impact of the weather was felt. People also take a longer-term view and forward prices for wheat look strong for the next couple of years. I would expect the upward trend to continue for arable rents.

“Many livestock and dairy rents also had some headroom though rising feed prices and a less certain price outlook could prove a limiting factor.”

He added that the work of the Land Reform Review Group which is considering extending the right to buy to tenants was very unsettling for landlords.