Farm auctions show decline
13 July 2001
Farm auctions show decline
TAKING a farm to auction used to be a popular option when it came to agricultural property disposals. But over the last ten years this trend has declined significantly (see graph).
The amount auctioned off last year was a meagre 5810 acres, a dramatic crash from the 44,050 acres that went under the hammer during 1990.
According to one industry pundit selling publicly was popular when the land market was strong, but now that demand is more uncertain agents prefer to do their deals behind closed doors.
Foot-and-mouth has helped exacerbate this decline – auction sales in particular have been curtailed by the wind of caution that has swept the country – and the number of acres sold this way looks set to fall again in 2001.
Lack of experienced auctioneers could also be part of the reason, says Brown & Cos Tom White. "With the demise of many cattle markets I think my generation could be the last to possess the relevant skills," claims the veteran agent.
However, some areas still tend to favour the old ways. Kent is one county where public sales remain an important aspect of the market, and Lambert & Fosters John Butler is a strong advocate of the system.
"All of our agricultural land goes to auction, it removes any uncertainty and helps to crystallise concentration during the sale."
This rhetoric proved correct last week when the firm knocked down Plain, Thorn, Longridge and Little Horden Farms, near Marden, in the Kent Weald, for a shade under £1.8m, with all 21 lots exceeding their guide prices.
Totalling 729 acres, the land, which was a mixture of grade 3 arable, woodland and orchard went for an average of just under £2500/acre, and Mr Butler reports that bidding was keen. "Over 200 people attended and the buzz in the room was electric."
Hobbs Parker is also planning to go public with the auction, on Aug 8, of 359 acres of predominantly grade 1 arable land near Cooling, Rochester.
Spendiff and New Barn Farms includes a modern dwelling but this is currently occupied under an assured tenancy. Even so, with a suggested price of £700,000-800,000 (£1950-2229/acre) the parcel looks a good deal.
"The soils can support high value vegetables," says agent James Hickman. One possible drawback is the lack of water, but the agent believes there will be plenty of interest from local producers with irrigation already on tap. *