Farmland market getting tougher
The average value of farmland in England rose over the first half of 2018, but overall the market is getting tougher.
A significant proportion of land which has been marketed over the past year is either still available or has been withdrawn – a trend which is obviously not factored into average prices.
The market remains incredibly polarised with location and farm type, rather than quality, remaining the key drivers of the price achieved. Buyers have the money for the right offering. Land is still achieving excellent prices in areas with tight supplies and where buyers are funding the purchase using money from outside of farming. However, in areas where farmer buyers dominate, prices are noticeably lower. The range of prices paid for arable land over the past six months goes from £6,800 to £15,000/acre.
That we are in this position is not unexpected, and it is one that is likely to continue until there is greater certainty about the impact of policy changes on the agricultural sector. Until then, we will be dealing with a market which is much like the weather – full of extremes.