East Anglia: Average farmland values have soared to record levels, study finds
- Credit: citizenside.com
Farmland values in Eastern England climbed to record levels in the third quarter of 2013, according to a new study.
Strutt & Parker’s Farmland Database found that arable farmland values in Eastern Anglia averaged more than £10,000 an acre, with record values repeated across the country.
The national figures showed record levels of £9,476 per arable acre. The current farmland values represent a 16% increase over the equivalent period for 2012, both nationally and for the eastern region, and demonstrates the strength of the farmland market throughout East Anglia.
The land agent puts the strong prices down to a number of factors, including a “generally robust” soft commodity market, which remains at record levels in spite of recent small falls.
Historically low interest rates had also affected prices, said the agent.
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Combined with these two factors, there was also an historically low level of supply of farmland to the market.
These are currently at the levels experienced in 2001 when the foot-and-mouth disease outbreak severely restricted the amount of farmland that was sold due to accessibility, have also contributed to the rises, it said.
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Giles Allen, farm agent in Strutt & Parker’s Ipswich office said that land prices could decrease if more land starts coming onto the market.
“The strong values currently being achieved reflect both the confident mood within the agricultural sector and positive factors such as low level of supply affecting the farm market,” he said.
“Whilst there appears to be no immediate danger of these advantageous market conditions altering in the short term, should either farming profitability fall or the amount of land being brought to the market increase, then it is likely that farmland values could decrease from their current record levels.”