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Farm rents rise four per cent

Published: 26 Apr 2017 09:30

An Official Statistics Publication for Scotland.

 

The average cost of renting agricultural land has risen four per cent since last year, new figures show.

The Chief Statistician in the Scottish Government today released the latest figures on Tenanted Agricultural Land in Scotland.

Average rent for land was £40 per hectare in 2016/17 compared to £39 per hectare the previous year. The increase was seen in both the poorer-quality Less Favoured Area (LFA) land, which was up four per cent from £26 to £27 per hectare, and in the better quality land which rose by five per cent from £130 to £137 per hectare.

In recent years there has been a reduction in the area of land rented under cheaper, long-term rental arrangements, and an increase in shorter-term limited duration tenancies. These arrangements are often more expensive, and this has driven up the overall average cost of renting.

The average rent has increased above inflation each year since 2008. Since then the overall average rent has increased 47 per cent or 30 per cent after accounting for inflation, with LFA land rising 62 per cent, or 44 per cent in real terms.

Rents were highest in Fife and the Lothians, with three quarters paying over £74 per hectare. They were lowest in Shetland and Na h-Eileanan Siar, where over half of rents were less than £4 per hectare.

The figures released today were produced by independent statistical staff, free from any political interference, in accordance with professional standards set out in the Code of Practice for Official Statistics.

Notes for News Editors

1. The full statistical publications can be accessed at: www.gov.scot/stats/bulletins/01275

2. These statistics are used by government and stakeholders to monitor and assess the economic well-being of the agricultural sector and for policy evaluation, and as part of calculations of the total net income from farming as part of the National Accounts.

3. Further information on Agriculture and Fisheries statistics within Scotland can be accessed at:

http://www.scotland.gov.uk/Topics/Statistics/Browse/Agriculture-Fisheries

4. More information on the standards of official statistics in Scotland can be accessed at: www.scotland.gov.uk/Topics/Statistics/About

Further information is available on request from the Scottish Government press office:

Contact:  Luke Boddice on 0300 244 2797