FG BUY&SELL        FARMERS WEATHER       ARABLE FARMING        DAIRY FARMER      FARMERS GUARDIAN        AGRIMONEY        OUR EVENTS        MEMBERSHIP BENEFITS        BLOGS        MORE FROM US

You are viewing 1 of your 2 free articles

You’ll need to join us by becoming a member to gain more access.
Already a Member?

Login Join us now

Farmland values 'more polarised than in living memory'

The highest prices have reached more than double the lowest

Twitter Facebook
Share This

Farmland values 'more polarised than in living memory'

Farmland prices have become ’more polarised than in living memory’, as the highest prices reach more than double the lowest.


Average arable land values were 4 per cent lower at the end of 2016 than in 2015, but Michael Fiddes, head of estates and farm agency at Strutt and Parker, said it ’masks a huge range’ in prices.


He highlighted two similar 61-hectare (150-acre) blocks of arable land in the South West of England, with one selling at about £19,768/ha (£8,000/acre) and the other at £37,066/ha (£15,000/acre).

 

Sold


He said: "There is still strength in the market. Just under half of arable land sold in England last year was sold for £10,000/acre or more, which is one of the largest proportions ever.


"But demand, like prices, is highly variable, and almost 40 per cent of land marketed in 2016 remains available."


Mr Fiddes said the result of the EU referendum had a more muted effect on the market than some anticipated, but had caused uncertainty.


He said: "However, the big story in the farmland market has continued to be the impact of the squeeze on farm profits as a result of low commodity prices.

 

Income


"With about half of all farmland transactions being ’farmer-led’, it is not surprising that as farm incomes have dropped, so have average land prices."


The South West of England is the region with the widest price difference for arable land.


Charlie Evans, partner in the South West region, said: "One of the biggest changes we have seen over the past year is there are now usually only one or two buyers for a farm.


"Properties which are best in their class still attract a great deal of interest from further afield, but in most instances, the eventual buyers are neighbours looking to increase their acreage."

Twitter Facebook
Rating (0 vote/s)
Post a Comment
To see comments and join in the conversation please log in.

More News

Top Tory MEP tells people to ‘stop moaning’ about chlorinated chicken

Top Tory MEP and Telegraph columnist Daniel Hannan has caused outrage by telling people to ‘stop moaning’ about chlorinated chicken entering the UK after Brexit.

Late farm payments putting cross-border farmers under ‘extreme financial pressure’

Farmers with land on both sides of the England-Wales border have been left facing extreme financial hardship as a result of late farm payments.

Farmers offered up to £6,800 per hectare to plant more trees

Farmers will be incentivised for planting more trees with a new £13 million government fund.

Meadow Foods announces September price rise

Its A price will increase by 0.85ppl from September 1

Harvest 2017: Variable yields create winners and losers

Throughout much of the UK, oilseed rape (OSR) and barley yields have reflected crops’ ability to cope with dry conditions earlier in the season.
FG Insight and FGInsight.com are trademarks of Briefing Media Ltd.
Farmers Guardian and FarmersGuardian.com are trademarks of Farmers Guardian Ltd, a subsidiary of Briefing Media Ltd.
All material published on FGInsight.com and FarmersGuardian.com is copyrighted © 2016 by Briefing Media Limited. All rights reserved.
RSS news feeds