POST Online Media Lite Edition



 

Scottish farm rents rises three percent

Staff writer |
The average cost of renting agricultural land has risen three percent since last year, new figures show.

Article continues below






Scotland's Chief Statistician today released the latest figures on Tenanted Agricultural Land in Scotland. Average rent for land was £39 per hectare in 2014/15 compared to £38 per hectare the previous year.

The increase was seen in both the poorer-quality Less Favoured Area (LFA) land, which was up three percent from £25 to £26 per hectare, and in the better quality land which rose by five percent from £124 to £130 per hectare.

Since most rents are reviewed only every three years, this implies that, where there have been increases, they have been, on average, well above three percent. Rent increases have been above inflation since 2008.

Rents were highest in Fife and the Lothians, with three quarters paying over £75 per hectare.

They were lowest in Shetland and Na h-Eileanan Siar, where half of rents were less than £3 per hectare.

Analysis of the results of the Farm Accounts Survey suggest that there was no clear link between profitability and whether a farm is wholly owned or wholly rented.


What to read next

Scottish government delivers on April payment pledge
Scottish growers urged to capitalize on rising demand for fruit and vegetables
Farm incomes in Scotland halved in four years