Mixed year for farmland market

The farmland market continues to set new records and challenges the predictions made by many at the start of last year.

But the overall trend shows a fairly static market with a reduced acreage available on the open market.

Bare land acreages are now coming to the market similar or at lower levels than in previous years, said James Brooke, of Bidwells, Norwich.

Nationally, bare land values were somewhere between  £4,500 to £5,000 per acre.

As Christmas approached, Farmers Weekly land tracker figures were showing  94,627 acres marketed in 2009 –  a 16% drop on the previous year when they recorded 183,440 acres coming to the market.

The economic downturn, continued uncertainty and depressed returns from more traditional property investment classes, have all had a knock-on effect on the agricultural and rural property market.

“Demand from the traditional farming sector continues to dominate but is supplemented by investors who now see farmland and associated property as a safe haven,” said Mr Brooke.

After increasing over previous years, demand from high-flying non -agricultural sectors but fallen back as a result of the downturn in the economy.

But there are signs that the residential and lifestyle purchasers are once again showing interest.

“This has been demonstrated to us by the enquiries for Crag Farm, Orford on the Suffolk coast,” said Mr Brooke.

The majority of land was purchased by existing farming business accounting for at least 53% of open market transactions.