Published: 26/10/2023 By Jack Curnick-James
As we enter the third consecutive year of Basic Payment Scheme reductions, farming businesses are under increasing pressure to assess their operations with a keen eye on profitability. Possible changes can encompass various strategies, such as enhancing existing assets, diversifying into new enterprises, or expanding the area under management. However, as borrowing costs rise, the affordability of land purchases diminishes, making the prospect of renting more attractive.Over the past twelve months, Symonds & Sampson has witnessed an increased demand for renting land whenever it becomes available. In the last three months alone, in the southwest region encompassing Wiltshire, Dorset, and Devon, several new parcels of both arable and pastureland have come onto the market, generating strong interest from prospective tenants.
In Wiltshire, Jack Curnick-James in our Devizes offices successfully leased a 600-acre block of productive arable land off-market, attracting tenders ranging from £140 to £210 per acre. In Devon, the Axminster office effectively leased 40 acres of pasture, with tenders ranging from £145 to £290 per acre. In Dorset, the Yeovil office successfully leased 114 acres in several blocks, with tenders ranging from £120 to £290 per acre.
When contemplating tenders for land, it is vital to consider profitability. Before submitting tenders, businesses should take stock of their current financial standing and construct partial budgets to ensure the proposed rental rates are manageable and allow for business growth without undue financial burden from rental payments.
For guidance on submitting tenders for bare land or equipped farms or if you own land that you are considering renting out, please contact Jack on 01380 710537 or our Rural Experts in your nearest Symonds & Sampson office (below).
For details of the range of Rural Services we can offer, please click here.
