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Key trends in the 2023 farmland market

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Strutt & Parker is one of the largest and most successful property consultancies in the UK, with offices across the country. Our Rural department provides strategic business advice and practical management services to farms, estates and a range of other landowners.

To find out more, visit the Strutt & Parker Rural Hub or email rural.enquiries@struttandparker.com.

Farmland continued to be an attractive investment in 2023, despite higher interest rates, the challenging weather and a squeeze on farm profitability.

The average price of arable land in England rose by 4% between 2022 and 2023, with an average price paid of £11,300/acre.

Over 70% of the arable land traded in England during 2023 made more than £10,000/acre.

As is usual, there was a much greater variability in pasture prices, with prices ranging from a low of £4,000/acre to a high of £16,100/acre, with an average of £8,700/acre.

It is interesting to note that total supply on the open market was 75,500 acres, which is 11% above the five-year average, but less than was available in 2022.

However, the feeling among almost all agents is that supply was higher in 2023 than the previous year, and our market knowledge suggests that once off-market sales are considered then more than 100,000 acres were available.

The trend of farmers accounting for a smaller number of transactions than in the past also continues.

Non-farmers bought more than half of the farms and estates sold on the open market in England in 2023, with farmers accounting for the lowest level of transactions on record.

Read the full English Estates & Farmland Market Review – Winter 2023/24 for more detail on:

  • Market outlook – what is in store for 2024
  • Supply – the amount of farmland marketed
  • Demand – the types of buyers currently in the market
  • Pricing – what the average pricing was in 2023.