Figures from Smiths Gore show English farmland prices rose by 4% to a record high of £7,900/acre in January to March, as demand continues to outstrip supply.
“This shows the strength of the farmland market compared with others, like the housing market, which is still weak,” says Dr Jason Beedell, head of research at Smiths Gore.
At the end of the first quarter, bare land values averaged £5,600 per acre – up 5% on the previous quarter, whilst equipped land averaged £8,600 per acre – up 4% – another all time high.
Both bare and equipped land values have now recovered from the dip which followed the peak of the market in 2008.
“Prices are still rising due to strong demand, from both farmer and non-farmer buyers, and the continuing low supply of land for sale,” says Giles Wordsworth, head of farm agency at Smiths Gore.
Just over 16,000 acres were marketed in January to March, the same as last year. But the constricted supply is more obvious when you look at the amount for sale in the six autumn and winter months:
Land for sale in England between September and March (acres):
Source: Smiths Gore
Cereals 2011 exhibitor information as supplied by Smiths Gore.