Scottish land rents are highest in 10 years

Average farmland rents in Scotland have reached their highest in a decade, rising 6% compared with last year.

The figures from the Scottish government show that the average farmland rent (across LFAs and non-LFA rents) increased from £36/ha in 2013-14 to £38/ha in 2014-15. This was the highest since 2003 when rents reached £38/ha.

LFA holdings suffered the most and drove the increase, with rents jumping on average by 10% to £25/ ha, while non-LFA holdings saw their rents rise 1% to an average of £125/ha.  

There has been an above-inflation increase in rent since 2008.

Range of rents paid per hectare in 2014-15

(Does not include lowest and highest 10% of rents. Data was collected in December 2014. Figures are approximates).

The data collected by the Scottish government was for rents paid, rather than those agreed (including crofts). It was collected as part of the December 2014 Survey of Agriculture and Horticulture, which covered 14,000 holdings.

The rental value relates to the rates for separate arrangements, not the average rent paid on a holding (which may be made up of several different tenancies). Rents reported as “in kind” have been excluded from the analysis but rents reported as zero have been included. Seasonal lets are excluded from the figures in the table. 

More than 2m hectares of Scottish farmland is rented seasonally or for longer than one year. About 23% of agricultural land is rented on full tenancy or croft and 13% is seasonally let.