Breakdown of long-term leasing arrangements as rents soar
Soaring rental prices have become “an issue” for long-term land leasing, with a number of the farm arrangements now under pressure for survival.
Austin Finn of the Land Mobility Service, which has assisted over 500 plans covering 47,000 acres of farm land, described the situation as “becoming very challenging” for some participants as rental prices for land have increased in recent years.
He confirmed that breakdown in arrangements are now occurring “because the rent is not being paid” where rental costs are too high and leasors run into difficulty on long-term leases.
“Going forward I can see it becoming an issue where the rent is too high,” he warned, adding that many leasors are experiencing difficulty with the greater volatility in incomes from farming.
Following a three-year pilot programme, where 282 arrangements for 25,000 acres of farm land were completed, the Land Mobility Service was extended nationwide two years ago.
During the pilot, the service was used by landowners in 22 counties. Co Cork dominated with almost a quarter of the completed transactions at 61.
Second highest was Kilkenny with 49, with Mayo third on 22 Laois on 19.
The lowest was Cavan with just one, followed by Westmeath and Kerry on two.