Land market falls
THE market for commercial farmland is weakening as falling profitability in most agricultural sectors takes its toll on incomes.
"There is evidence of 10% price falls in some regions during the last six months," says the recently-published Savills Agricultural Research Briefing. "But nationally, average land values rose by 1.1% during the first half of 1997," it adds.
Also, values of well-located residential farms and estates are expected to rise by up to 25% by 2000 due to continued demand from the non-farming sector.
Savills says: "This will support agricultural land prices in the most popular areas and limit any decline in vacant possession farmland values to 15% by 1999". *