Farming

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British land prices climb by 300pc in past decade

Commercial farmland has become a portfolio 'must-have' for investors, says British estate agents Savills.

Strong demand from commercial farmers and city investors has driven the price of British agricultural land up by as much as 300pc in the past 10 years.

Arguments such as 'they don't make it any more' and 'scale is essential for profitable farming' were behind the strong appetite for quality arable land, Savills said.

"The recent frenzy for good blocks of arable land has seen prices rise from £2,500/ac (€3,024/ac) in 2002 to £8,000/ac (€9,679/ac) this year, and higher in specific instances -- a rise of more than 300pc in 10 years," said Charles Dudgeon, head of the farm agency at Savills.

"Add to this the fact that commercial farmers are trying to expand their existing units, and all the ingredients are in place for an exceptional performance in the price of the best land during 2012."

Quality arable land was also said to have made a comeback.

Caitriona Murphy

Indo Farming