Land & Farms: Farmers compete for land in north Wales

Eifion Bibby of Davis Meade Property Consultants says there’s reason to be optimistic for 2012’s North Walian land market

2011 market – key features

The market remained strong. Supply has been relatively limited with price spikes depending largely on local and neighbouring competition. Purchasers were principally commercial farmers. A small parcel of Vale of Clwyd land sold for up to £18,823/acre with other parcels of mainly grade 2 and 3 land of between 2.3 acres and 28 acres ranging between £11,000 and £16,500/acre.

A 5.74-acre block of land near Efenechtyd, Ruthin sold at auction this July for £70,000 (£12,195 per acre), nearly three times the price the same parcel made 13 years ago (£25,000 in May 1998).

• Land market strong

• Price spikes depending on local competition

• Available land remains scarce

2012 outlook – main market influences

• Continued optimistic outlook may be influenced by:

• Fluctuations in commodity prices on concerns in euroland

• Availability of affordable finance

• CAP reform

• Availability of land for sale

2012 outlook – what will happen to land prices?

It is anticipated the market will remain strong with prices in the current range owing to factors above.

How much land will come on the market in 2012?

Less, owing largely to uncertainty over CAP reform.

Easiest farm to sell in 2012?

Productive, commercial equipped unit with homestead and land of 150 acres-plus.

Most challenging farm to sell in 2012?

There is limited competition for less productive upland farms having a significant proportion of rough grazing/amenity characteristics.

Sale highlight of the year

A 4.5-acre (1.82 ha) parcel of level Grade 3 meadow land at Rhydmeudwy, Ruthin, Denbighshire, made £13,777/acre at auction selling to a neighbouring farmer (surpassing the guide price of £8,000-£10,000 per acre). It was productive level ground abutting a natural watercourse and with road frontage access.