Farmland market holds firm despite pressures

The farmland market is holding steady in the face of mounting sector pressures, suggests the latest Knight Frank Farmland Index.

Despite wider challenges across the agricultural sector and ongoing policy uncertainty, values have remained largely stable, underlining the market’s resilience, says Will Matthews, the land agent’s head of farms and estates.

The index suggests the average price of bare agricultural land fell just 1% during the first quarter of 2025 to £9,072/acre. This follows a similar drop in the final quarter of 2024, bringing the annual change to just -1.9%.

“While farmer protests and policy reform have dominated headlines, the farmland market itself has experienced a fairly uneventful start to the year,” says Mr Matthews. “Values have remained steady.”

Relatively few new properties have been put up for sale so far in 2025. Just over 8,000 acres have been publicly launched during the first quarter – a drop of 11% compared with the same period last year.

While there has been speculation that changes to inheritance could affect land values, Mr Matthews says the market has not yet responded with any significant increase in supply or signs of downward price pressure.

Transactions

“Prospective buyers seem relatively sanguine about the reforms, and we completed a number of successful transactions in March,” he explains.

“Farmland continues to trade at near-record prices, and while deals may have proceeded regardless, the arrival of spring sunshine has certainly lifted spirits and helped bring renewed momentum to the market.”

“A large block of land in the Midlands, for example, sold for around £13,000/acre to a progressive farming business, with most other sales breaking the £10,000/acre barrier.”

Mr Matthews points to more immediate concerns, including big drops in Basic Payments and uncertainty surrounding the government’s environmental payment schemes following the closure of the Sustainable Farming Incentive (SFI).