27 March 2015 | Online since 2003



28 August 2012|Finance,News,Property News

Autumn farm rent reviews need 'reality check'


The Tenant Farmers Association is urging all rural landlords and their agents to take a common sense approach to this autumn's farm rent reviews.

The autumn is a traditional time for settling farm rents normally for the next three years following notices served in the previous year.

"We really need landlords and their agents to take a realistic, long-term approach" said TFA Chief Executive George Dunn.

This season has seen many landlords seeing unsustainable increases in rents particularly for Farm Business Tenancies.

They are doing so on the basis of the unreal levels of rent that have been tendered by people mainly on the basis of expanding existing operations.

"We need landlords and their agents to have an urgent reality check" Dunn said.

“Recent tender rents have been fuelled by an unhealthy cocktail of over inflated land prices, scarcity, hubris and the economics of the madhouse. This year’s conditions must serve as a massive wake-up call both to those who have paid over the odds for renting land and those who have accepted those rents. A dry spring, a wet summer and a difficult harvest will cause significant problems even for tenants on reasonable rents let alone those who are paying excessive levels," said Mr Dunn.

“Happily we are seeing some landlords taking a more pragmatic approach where they are prepared to look at the realistic profit achievable from farming the holding and setting the level of rent accordingly. The market isn't all about tender rents, it also must factor in these settlements between willing parties which are informed, negotiated, freely agreed and arguably more realistic than what is taking place in the tender market," said Mr Dunn.

"The TFA is calling on all tenant farmers to resist unreasonable increases in rent sought by landlords this season. Obviously rents need to be looked at on a case-by-case basis and therefore it is essential that tenants seek advice about their individual circumstances before agreeing to anything. The TFA is on hand to provide that essential advice and information," said Mr Dunn.

“Some landlords and their agents may try to pressurise tenants to settle before the applicable rent review date. However, this is only the date whereby the parties either have to have agreed or, in the absence of an agreement, one of the parties (in this case the landlord) should have applied for the appointment of an arbitrator which merely provides for further negotiating time. Only a very few rent reviews are resolved by arbitration even where an arbitrator is appointed. Therefore, tenants should not feel forced to settle at unreasonable rent levels,” said Mr Dunn.

Download



Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


20 March 2015
Shift Manager
You will be an accomplished Shift Manager with experience in Food/FMCG production, including bakery, ambient, chilled or Dair...

11 March 2015
School Milk Delivery Drivers
2 x School Milk Delivery Drivers Required for a 4 day week Starting salary of £320 per week Starting time of Midnight Full tr...

24 March 2015
Poultry Farm worker and processor
Poultry farm worker and processor required for our farm. Experience of working with animals and driving farm machinery prefer...

10 March 2015
Commercial Property Solicitor
Agriculture experience would be advantageous for the role. Commercial Property Solicitor, Leicestershire - Are you looking fo...

11 March 2015
HR Administrator - Maidenhead
Provide daily ad-hoc administrative support to the Business Unit Director and HR Managers e.g. filtering calls, typing letter...




Top stories you may have missed
23 March 2015 | Cattle

UK butchers face difficulties to recruit...

Butchers in the UK are losing a generation through lack of training opportu...


20 March 2015 | Arable

Dust - the secret fertiliser?

NASA research has revealed how dust blown from the Sahara desert helps supp...


19 March 2015 | Arable

The Budget 2015: A Farmer's Budget?

“In the run up to the Budget 2015 most commentators were predicting that th...


17 March 2015 | News

UK's first floating solar power system l...

The UK’s first fully operational floating solar panel system has been unvei...


13 March 2015 | Animal Health

Labour and Conservatives clash over badg...

Axing the badger cull in England and Wales will save more than £120 million...


12 March 2015 | News

Solar could be cheapest energy source by...

By 2025, solar power could become one of the cheapest forms of energy in ma...


11 March 2015 | Finance

English buyers turn their attention to S...

Demand for Scottish farm land remains strong and continues to be better val...


9 March 2015 | Cattle

2020 vision for the Welsh red meat indus...

The Welsh red meat industry should aim to increase sales by at least 34 per...


6 March 2015 | News

MP raises egg industry concerns on trans...

Fears about the impact that a proposed transatlantic trade agreement could ...


Stay safe and legal when flying drones

The use of Unmanned Aerial Vehicles and Unmanned Aircraft Systems - or dron...