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).



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.



"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

Let agri-trade specialists broker best Brexit negotiations - AIC chief

THE Brexit debate must quickly move beyond the current phase where the protagonists resemble nothing more than boxers squaring up before a big fight.

Better flood resilience needed to safeguard food production, says NFU

Protection of food production has been cast under the spotlight following industry calls for a better flood resilience structure.

'Managing risk should be a high priority' - Forward buying feed key to mitigating price highs

Bumper soybean crops in South America have kept downward pressure on protein prices but strong demand could drive prices higher

'Price not always most important factor' - UK must play on provenance and quality post-Brexit

Provenance and credibility could take precedence over price as the UK negotiates a post-Brexit deal for red meat.

New 10 metre buffer zone for metaldehyde slug pellets

Growers applying metaldehyde slug pellets are now required to implement a minimum 10m buffer zone alongside watercourses and all field boundaries
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