Back in 2020 when Covid first reared its ugly head, bringing machinery production to a... Read more
STRONG LAND MARKET
We have had a couple of years of huge uncertainty in our farming industry following Brexit, Covid, and the phasing out of BPS; from which we could understandably have expected our farm gate prices to drop reflecting the lack of confidence. Perversely exactly the opposite has happened, and we have seen the best hogs hitting £200 per head this spring, OSR being quoted at £450 a tonne, and prime quality beef heading dangerously towards 300p per kilo live weight.
It has been fascinating to watch how all these differing weather bells have impacted upon the agricultural land market itself, and again many of the forecasting pundits have been frustrated.
Having peaked in 2016 when the best of Grade 1 / 2 farmland would make £15,000 to £16,000 per acre, prices proceeded to drop 20-25% over the next few years.
There has been very little on the market in the past 18 months but against predictions, interest has gradually increased and certainly this summer there has been a noticeable hardening of the market place with small paddocks attracting bids of £20,000 per acre or more and a small farm that we sold in 2016 has just completed with an uplift of 40%.
Our message is that if you want or need to sell for any reason such as retirement or raising capital, there is no need to be sceptical about current market levels. Please make contact with one of us for a free discussion.