Increasing rents over a year for the farms

Rents rose in all regions but, in 2013, Yorkshire, the East Midlands and Eastern England saw the highest increase.

Here, based on 33 reviews covering 4,909 acres, arable rents rose 35 per cent from £111 an acre in 2013 to £151 an acre. Reviews of 18 livestock farms covering 3,651 acres saw rents rise from £62 to £80 an acre, and on 12 mixed farms covering 4,448 acres by 26 per cent from £66 to £83 an acre.

There were insufficient dairy reviews to give an accurate figure but the region as a whole saw rents rise 34 per cent from £88 to £118 an acre.

In Northern England 149 reviews covering 35,826 acres gave a regional average of £100 an acre – 19 per cent up on last year’s £84.

Arable rents – based on 55 reviews covering 7,555 acres – rose 21 per cent from £112 to £134 an acre; 12 dairy reviews covering 1,809 acres saw rents rise 25 per cent from £84 to £104 an acre; 63 livestock reviews covering 22,607 acres, saw rents rise 18 per cent from £63 to £74 an acre; and 19 reviews covering 3,854 acres on mixed farms saw a 14 per cent rise from £76 to £87 an acre.

Smiths Gore believes strong demand for land to rent will continue, despite softening commodity prices.

Simon Blandford, head of farm management, said crop prices had mostly fallen as generally good harvests and good seedbed conditions for new crops meant world supplies remained high.

Wheat prices had fallen by more than £100 per tonne in the last 18 months. “Forward prices for harvest 2015 are higher but it is the scarcity of land available to rent, coupled with high demand, that will remain the main driving factor for open market rents,” he said.

Falling beef prices mean unless current rents are low, any scope for an increase may not be as great as in the past.

Dairy farms have been hit by falling prices.

“Rents at review could see an uplift but generally only if the unit has good facilities and a low capital investment requirement,” said Mr Blandford.