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Agricultural Land Prices and News
UK Land Safer Than Houses.
While property prices in the UK and across the globe have dropped for much of 2008, agricultural land in the UK has been a good investment. According to research from Savills, agricultural land has increased in value for all of 2008 by 21.5 percent.
One of the main reasons for the increase in land prices is the price of wheat, which correlates well to the price of land. 2009 is expected to be a good year for wheat prices, which has helped to drive up land prices. Over the past five years, agricultural land has increased in value by 135 percent....
[Homes Go Fast website, December 2008]
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UK land defies the global property downturn.
FOR investors buying agricultural land in the UK has been the success story of 2008 as it has been resilient to the property downturn.
As the property market declined and residential development land values plummeted, agricultural land ends the year up 21.5% on 2007 values, according to research by Savills....
[PropertyWire website, 19th December 2008]
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Farm Finance: Farmland still has development potential.
THE relentless stream of bad news about the property market and wider economy means it is little surprise that developers are not chasing around the countryside, trying to buy anything with a sniff of potential.
However, development is a long-term game and it is still worth landowners pursuing the promotion of land, even if a developer is not prepared to enter into an option or promotion agreement in the current market....
[Farmers Weekly website, 7th December 2008]
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New benchmark for Lincolnshire arable.
AT it's November auction, Lincolnshire firm J H Walter found a new benchmark value for arable land that is hovering around £4500/acre.
Results at the mixed property auction, however, also showed that farmland was by far the strongest asset as many of the commercial and residential lots failed to find buyers on the day....
[Farmers Weekly website, 3rd December 2008]
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There's cash in the woods.
INVESTORS with their money in woodland have seen capital growth of 125-150 per cent over the last five years.
And average plantation prices have risen more than 100 per cent in the period indicating that forestry has proved to be something of a safe haven in current uncertain times....
[Farmers Guardian website, 28th November 2008]
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Recent sizeable land sales highlight great opportunity.
THE ongoing strength of the rural land market has led to several large land disposals in recent months, as experienced farmers take the decisions to liquidate some of their assets during an incredibly buoyant market, in preparation for retirement or to fund alternative projects.
Others could well be advised to follow suit. If the next generation in the family are not keen to farm, then selling land at what could well be the peak of the market, offers a great opportunity to generate substantial capital sums. This capital could then be used to invest in other enterprises diversifying and spreading risk, to give lump sums to family members or to secure an excellent retirement nest egg, all in a controlled time period which could support very effective tax planning....
[Bruton Knowles website, Rural Services, Rural News, November 2008]
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EU opens new SPS entitlement to permanent crops sector.
THE Rural Payments Agency (RPA) is urging growers and farmers with permanent crops to come forward and register for new subsidy payments of up to 230 euros per hectare, as the EU opens the Single Payment Scheme (SPS) to all those growers with permanent fruit and vegetable crops, nursery crops and vines.
The EU is offering entitlements to this part of the sector for the first time since the SPS was launched in 2005 as part of the reform of the CAP....
[Bruton Knowles website, Rural Services, Rural News, November 2008]
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Farmland values softened in the third quarter of this year as an air of caution entered the market, but good quality farms and estates are still in demand.
ACCORDING to our Farmland Value Survey the average value for all types of farmland increased by 27% across Great Britain during the first three quarters of 2008, adding to the growth recorded in 2007. This increase in values was seen in all regions.
However, the growth took place in the first half of the year with the average land prices softening by -1.6% during the third quarter....
[Savills website, Rural Research, October 2008]
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Where next for the farmland market?
'NEW plateau' appears to be the phrase of choice for many farm agents this autumn.
After the frenzy of the spring where prices spiralled weekly, if not daily, we have entered a period of relative calm following the storm. The spring market saw some enormous premiums being paid for commercial land in some parts of the country....
[Farmers Guardian website, 07th November 2008]
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Farmland prices double in five years but slowdown predicted
CUMBRIAN farmland prices have doubled in five years according to county land agents.
But many are advising farmers not to put land or farms on the market until January because of a slowdown caused by the credit crunch....
[The Cumberland News website, Farming, 07th November 2008]
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Farmland continues to sell well
DESPITE a doubling of land prices in the last three years, Savills' autumn 2008 research briefing reveals the rural market has not escaped the economic turmoil entirely, with values softening slightly.
The survey confirms the East of England saw a 20pc rise in prices this year after a 44pc increase during 2007....
[Eastern Daily Press website, Business, 28th October 2008]
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Overview - uklandandfarms.co.uk
UKLANDANDFARMS.CO.UK (UKLAF) is the new website for farmers, landowners and anyone interested in buying or selling land in the UK. The website is still in its first year, officially launched in June, and is already experiencing over 43,000 visitors a month....
[Property Portal Watch website, 27th October 2008]
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Farmland in Wales most expensive in UK
AGRICULTURAL land in Wales has become the most expensive in Britain as farmers scramble for dwindling supplies.
Prices quadrupled in the past five years with Wales overtaking the south east of England as the most costly area to buy farmland....
[Daily Post website, 25th October 2008]
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Scottish agricultural land prices increase 134pc in five years
AGRICULTURAL land prices in Scotland have increased by 134per cent in five years and now average £4,262 per acre.
And according to the annual Bank of Scotland Agricultural Land Price Index from which the figures are taken, the average value of a farm in Scotland now exceeds £1 million, at £1,154,615....
[Farmers Guardian website, 25th October 2008]
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Farm soil quality slammed as UK posts bumper crop
DETERIORATING soil quality is jeopardising some of Britain's most productive farming areas, scientists have warned.
A report published today by the Royal Society of England blames heavy machinery, drier summers and a changing climate for endangering crop production....
[Daily Post website, 23rd October 2008]
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Analysis: is the Prince of Wales right about GM crops?
[Times Online Website, 13th August 2008]
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Agricultural land sales top £500m for the first time
FARMLAND has never been more widely available as farmers look to sell off land and take advantage of the high prices, says a new report.
Nationally, so far 2008 has seen more than £500million worth of agricultural land sold – the first time the land market has broken that level....
[Farmers Guardian website, 11th August 2008]
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Robot plane sweeps over UK fields
The first flights have been conducted of an autonomous unmanned aerial vehicle (UAV) to monitor UK farmland.
The robot plane flew over fields in England and Wales to map the nitrogen levels in soil, to determine whether fertiliser applications were needed....
[BBC Website, Science, 8th August 2008]
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AMC launches portal for nationwide land search
A PROPERTY portal is being launched for anyone wanting to find and buy farmland and rural business property in the UK by the Agricultural Mortgage Corporation (AMC – part of the Lloyds TSB Group).
The UK Land and Farm website, at www.uklaf.co.uk, has been developed in response to the unprecedented demand for agricultural land, which is reflected in soaring values – up almost 100 per cent in three years.
Dedicated to the agricultural and horticultural sector, only listing properties with three acres and more, this unique website lists almost 600 land, farm and rural properties from almost 50 of the leading land agents in the country, and is set to grow.
Jim Bryant, head of Rural Agency at Bidwells, said: "UKLAF provides a new and exciting way for potential buyers to search for rural, equestrian property and farmland. There are other established portals out there but AMC’s strong association with land agents make it
uniquely placed to develop what will be a fantastic tool as a nationwide dedicated property portal just for the rural sector. We think it is just what is needed in the market place and so look forward to sharing in that future success."
The increased demand for land is being fuelled by rising commodity prices – wheat has doubled in value in 15 months and milk has risen by 40%. However, demand is not just from farmers wishing to expand operations but also from City institutional buyers, despite the effects of the credit crunch.
From an investment point of view, private purchasers continue to be attracted by the taxation benefits of owning farmland, and in particular with relation to Inheritance Tax. Interest from overseas buyers, particularly from Northern Ireland and Denmark, has further driven up prices.
Jonathan Allright, senior manager Network and Operations at AMC, said: “At AMC, we really understand the financing of farmland and that is why we are moving to fill this gap in the market. Until now there has been no facility dedicated solely to the sale of land that allows potential buyers to search on a nationwide basis.
“With the RICS reporting land sales down more than 20% in 2007, the supply of land remains tight but, despite the credit crunch, demand remains very strong. We feel that it is important for farmers or other potential buyers to be able to search for land across the country quickly and with ease.The 600 properties on the site are an excellent start given the scarcity of land for sale and we are confident this number will grow.”
[A&I Agriculture and Industry News, 19th June 2008, Vol 1, No.11, pg 3]
All articles are for general interest only and are not intended to constitute legal or professional advice. You should obtain independent specialist advice if you have specific queries. The articles are the works of the authors to whom they are attributed. Neither AMC nor its employees, officers or agents warrant their accuracy or completeness or accept responsibility for any losses or damage whatsoever caused by reliance on information contained in any article.
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UK Land & Farms (UKLAF) is a website owned and operated by The Agricultural Mortgage Corporation Plc.