Agricultural estate values are expected to rise 5% a year for the next five years.
The agricultural and rural land survey from Chesterton Humberts predicted the increase in land prices would continue to accelerate.
Agricultural estate values increased by 2.1% in the second quarter of 2013, the land agent recorded.
This growth was largely driven by sustained demand for bigger units, in particular commercial farms, it said.
“It should be noted that this is off the back of limited transactional evidence and anecdotally there appears to be caution being exercised by purchasers with regard to asset pricing and quality,” said the Chesterton Humberts Agricultural and Rural Land and Estates Survey.
The Chesterton Humberts Agricultural Estates Index, which only tracks Grades 1-3 land values, recorded land – including estates – at an average of £10,523 an acre.
Chesterton Humbers expected the market to become highly polarised, especially in the short term, as sustained growth in land values over recent years had made purchasers more selective in terms of what they were willing to pay.