THE repercussions of the poor start to the year will continue to run and run, warns the Tenant Farmers’ Association.

As such, chief executive George Dunn called on common sense to prevail when it came to negotiating a fair rental price.

For the prolonged winter conditions, combined with Natural England’s ongoing delays in paying out agri-environment subsidies and the continuing difficulties in dealing with the Rural Payments Agency over the Basic Payment Scheme were brewing a perfect storm.

“Livestock farmers have had to buy in considerable quantities of expensive feed and fodder for animals which have been kept in longer than expected,” he said.

“Arable farmers have had to write off some winter sown crops as well as being delayed in getting their spring crops drilled. Field operations in general have been massively disrupted.

“All of these issues will feed into the bottom line of the majority of farm businesses, regardless of their wider business management performance.”

There was no doubt that margins would be squeezed and many would be under severe cash flow pressure, having had higher than expected costs and lower than budgeted returns.

That had to be reflected in this year’s rent reviews which, coupled with the future uncertainty surrounding the implementation period for Brexit, should result in at least standstills – if not reductions – in rents for both Agricultural Holdings Act 1986 tenancies and Farm Business Tenancies.

The TFA was also concerned that new tender rents for Farm Business Tenancies were being pitched at unsustainable levels.

Mr Dunn said: “Even in more favourable circumstances it is difficult to see the justification for the tender rents that are often quoted for land offered on Farm Business Tenancies.

“With this year’s particular difficulties, rents of around £150 per acre or more are simply insane.”

Recently issued rent statistics from DEFRA suggest average levels of rent on Farm Business Tenancies in 2016 were below the headline figures often quoted, indicating the average sat at just below £90 per acre.That showed many landlords and tenants were doing sensible deals on rent and ignoring the headline grabbing levels that are often quoted by landlords’ agents.