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LVT too much for farmers?

Written on . Posted in Business and farming.

Why do opponents of LVT wheel out the argument that farmers could not afford to pay LVT? This is taken from the latest statistics from DEFRA.

“General cropping and cereal farms had large increases in rent in 2010 and the prices now stand at £249 and £176 per hectare respectively. This may be due to the improvement in the profitability of arable farming.” The main findings were

  • 2010 rent prices for Full Agricultural Tenancy (FAT) agreements have risen across all regions.
  • Cattle and sheep farms in less favoured areas (LFA) showed the largest FAT proportional increase (21%) from £52 in 2009 to £62 in 2010.
  • Average rent for dairy farms increased by 16% between 2009 and 2010 and now stands at £180 per hectare.

The idea that farmers could not pay an LVT is absurd.