A three-tier market now
THREE tiers now exist in the vacant possession farmland market and the future outlook points to this trend strengthening as each tier fares differently in the present agricultural climate.
Steve Humphris, AKC Agriculture, Devizes highlights the key predictions.
• Tier one – grade 1 and 2 vegetable land with good water retention or adequate irrigation will maintain present values based upon good potato and vegetable profitability and its ability to produce unsubsidised produce.
• Tier two – grades 2 and 3 combinable cropping land eligible for area aid is suffering and capital values are likely to drop back to between £1800 and £2000/acre from present averages nearer £2300/acre.
• Tier three – country estates with at least one of the following. A desirable residence, excellent shoot or good amenity and location could see current premiums of 20% fall to below 10%.