With harvest in most areas nearly wrapped up in good time, despite some variable reports of yields with oilseed rape and winter barley performing poorly in many cases, wheat and spring barley, both performing better, this is a good opportunity to review rental agreements, particularly in light of continued low commodity prices, in the arable and dairy sectors and a large amount of uncertainty with Brexit and the effect on exchange rates.

A number of agreements will have end of September rent review dates, for both Agricultural Holdings Act tenancies and Farm Business tenancies.  This is an opportunity to sit down, review the various agreements held and look at what, if any notices, can be served for possible reductions in rents in 2017.  Just because notice is served, it doesn’t mean there will actually be a reduction in rent, but without doing so, the opportunity is missed.

Taking a broader view, we have been working with a number of tenant farmers, who are looking to secure the next generation within their businesses and often hold a wide range of Farm Business tenancies, Contract Farming agreements, Agricultural Holdings Act tenancies and owned land.  Where there is good succession planning in place in the business, landlords are happy to consider bringing younger members of the family onto the tenancy, securing long term agreements.  This can prove a useful exercise, if combined with a rent review and often a bit of “give and take” will secure a good long term solution for the business.  This is also an opportunity to review investment plans, both with landlord and tenant, in times of long term, low interest rates.

Some time spent reviewing these agreements can often secure a long term profitable outcome, which gives further opportunity for the next generation and greater security for the business as a whole.

Contact Max at maxsealy@fcgagric.com or local FCG office if you need assistance in reviewing rents and agreements.