Agricultural rents have continued to rise by an average of 20 per cent over the last 12 months, according to the Country Land Business Association (CLA).

It says East Midlands members and chartered surveyors Smiths Gore have also charted an increase by 27 per cent in reviews since March 2010.

Arable rents rose the most at 24 per cent, followed by livestock at 21 per cent and intensive arable 20 per cent.

The firm claims Farm Business Tenancy rents rose by 26 per cent as rent review clauses in the tenancies allowed the full effect of commodity price and profitability increases to be taken into account.

Agricultural Holding Act rents rose by slightly less reflecting the less open market nature of this type of tenancy.

Rents have risen in all regions, with the predominantly arable regions getting the highest rises and rents.

For the ‘typical’ farm, staff from Smiths Gore say this has meant an increase in rent of £3,100 a year from £16,100 to £19,200 – just under £10,000 over a three-year rent review cycle.

All sectors have experienced 20 per cent or more increases apart from the dairy sector, which has experienced pressure on farm-gate milk prices and rising input costs.

Lettings to new tenants achieved a higher increase than rent reviews – so putting land onto the open market to test what people are willing to bid is the best way to achieve the highest rents.

Head of research, Dr Jason Beedell, said: “The best way to maximise rental income is to invite open market bids for small, bare land lettings on Farm Business Tenancies, as this generates the most interest from neighbouring farmers looking to expand their acreage.

“This approach can also release farm buildings from lettings for alternative uses, redevelopment and may also reduce maintenance costs.”