The latest statistics on land prices show the market is not running out of steam.
According to the Rural Institution of Chartered Surveyors' (RICS) Rural Land Market Survey, farmland prices reached an all-time high in the first half of 2011.
The 'opinion-based' measure saw arable land prices rise to £6,681 per acre, compared to £6,368 per acre in the second half of 2010 (a 5% increase). Pastureland values rose by 4% to £5,549 per acre.
Farmland prices rose in all regions of Great Britain, except for the North West and Wales, where prices fell by 1% and 2% respectively. However, these regions are still the two most expensive. The cheapest farmland is in Scotland at £3,813 per acre.
Full steam ahead The increases have been on the back of good demand from commercial farmers keen to expand due to strong commodity prices. At the same time, demand for residential land (lifestyle purchasers) has reduced in tandem with the national housing market.
Looking ahead, surveyors expect the current trend to continue over the next 12 months with high interest from commercial farmers but less so from the residential sector. However, with farmland availability actually increasing for the first time since the first half of 2008, the pace of price increases may slow.
The full survey can be found on the RICS website at www.rics.org
Forecasts for UK red meat production have been released by the Agriculture and Horticulture Development Board (AHDB). All three sectors are expected to have an increase in production this year compared to 2010. Production in both the sheep meat and beef and veal sectors is forecast to decrease in 2012 while pig meat production is anticipated to continue its increase.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
