Strutt and Parker have recently released their Autumn 2018 farmland market review and it provides a useful commentary on the state of the agricultural land market. Perhaps unsurprisingly, the price of arable land has varied between £6,000/acre and £15,000/acre over the last nine months. This is quite a large range, however, it reflects the general market sentiment that location is key and this will dramatically affect prices that can be achieved. Location has always been important, but it appears to be more ‘localised’ than ever, with very small pockets of high demand often surrounded by larger areas of lower demand.
In addition, the report has seen more land marketed in 2018 at any point in the last 10 years. However, a significant chunk of the land which came forward in Q3 is accounted for by a handful of larger landowners. Seven farms marketed in Q3 accounted for 28,000 acres alone. However, even ignoring these, supplies do look to have increased. Perhaps some have looked to sell in light of the increasing political and economic uncertainty surrounding Brexit?
As ever, there are many other factors apart from farming profitability that affect land values. Political and economic issues, as well as location, always need to be taken into account, alongside a range of other considerations.
You can read the full report here