Agri-Shop Ltd
Farminguk
29 August 2016 | Online since 2003
Less co2 Limited


28 August 2012 15:07:55 |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

0 Comment

loginuserlogo
Name

Please enter your name


Email

Please enter your email

Please enter valid email


Comment

Please enter your comment


Post Comment

Your comment has been submitted successfully. Please wait for admin approval.


Comments

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


Canada | 26 August 2016
Canadian beef exports to EU in limbo over E. coli dispute

If differences of opinion over food safety practices are not resolved, the big promises of a new European market for Canadian beef may be a pipe dream. The Comprehensive Economic and Trade Agreemen...


India | 26 August 2016
GM mustard clears hurdle in India but more remain

A government panel has cleared commercial use of what would be India's first genetically modified (GM) food crop, but politicians still have to give final approvals amid wide-spread public opposition....


USA | 26 August 2016
USDA buys $20 million in cheese from dairy farms

Moving to bolster dairy farmers who are struggling to cope with price declines, the Agriculture Department announced Tuesday it is spending $20 million - on 11 million pounds of cheese. A taxpayer ...


France | 26 August 2016
Lactalis talks with French milk producers end with no deal

A meeting between Europe's largest dairy group Lactalis and French milk producers requesting a rise in prices ended in a deadlock after 10 hours of negotiations, sources close to the talks said. ...


USA | 26 August 2016
California farmers turn to sewers for water

California's prolonged drought is forcing Central Valley farmers to scramble for water to irrigate crops. They have to be creative. One agency is even turning to a sewage plant to meet demand. Just...



Trending Now

Viewed
Discussed


Top stories you may have missed
FarmingUK
FarmingUK Logo

FarmingUK

A new survey has revealed that the vast majority of British consumers belie...


FarmingUK
FarmingUK Logo

FarmingUK

The British public are overwhelmingly in favour of keeping or strengthening...


FarmingUK
FarmingUK Logo

FarmingUK

The sustained recovery of pig prices since the spring has come at a time wh...


FarmingUK
FarmingUK Logo

FarmingUK

A World Trade Organisation (WTO) panel has declared the Russian import ban ...


FarmingUK
FarmingUK Logo

FarmingUK

A new study has linked oilseed rape crops grown from neonicotinoid-treated ...


FarmingUK
FarmingUK Logo

FarmingUK

Philip Hammond is to guarantee billions of pounds of UK government investme...


FarmingUK
FarmingUK Logo

FarmingUK

Access to the foreign labour market is 'critical', according the chief exec...


FarmingUK
FarmingUK Logo

FarmingUK

The Tenant Farmers Association has said the National Trust's vision for a p...


FarmingUK
FarmingUK Logo

FarmingUK

Ulster farmers will 'not lie down and wave the white flag' when Brexit nego...


FarmingUK
FarmingUK Logo

FarmingUK

The cost of rural crime to the UK economy costs £42.5 million a year, accor...


closeicon
Username
Password