Farmland Market Update Autumn 2019
Stable demand from buyers but fewer opportunities across the marketplace As we move into Autumn we start to round off a rather more sedate year of activity than many had predicted. With little evidence of progression over timing and implications of an EU exit, coupled with a lack of clarity over future farming policy, those vendors who are not under pressure to sell have generally taken a wait and see approach. Many consider that demand for farmland has eroded, as buyers hold off for similar reasons. Our research and trading activity in 2019 argues with this view, as buyers are generally retaining a very firm and consistent interest across the board. Our Farm Agency team have registered more farmland buyers in the first six months of 2019 than through the entire 2018 calendar year. This continuing demand, along with limited supply, has resulted in values remaining stable and in some cases strengthening. Quality, scale and location remain the key drivers behind those values. Where rollover buyers and amenity or lifestyle purchasers are active it is location that firmly dictates transactional values. Rollover buyers will continue to drive farmland values for the larger commercial holdings over 500 acres. Private investors, Institutions, Charities and Developers are generally dictating farmland values where there is significant strategic appeal and hope value.
represented the majority of vendors in 2019 and we expect this trend to continue. Looking ahead, our views remain consistent and we expect the farmland market to remain calm. We await further detail surrounding the Agriculture Bill, and specifically the proposed Environmental Land Management Schemes. These new policies will impact upon future profitability across our industry and will almost certainly require changes to farm business structures and operations across the UK. Those well diversified farming businesses who are not wholly reliant on pure agricultural income, and those progressive farmers who have maximised efficiencies and sustainability will continue to invest especially where they can add value and further strengthen profitability. Lifestyle and tax-driven (rollover) buyers will also continue to invest for their respective purposes. As anticipated we have seen an increasing number of buyers focusing on soil health, enhancement and productivity potential in more depth, as they look for opportunities to build capital value over the long term, and hedge against any short-term land value fluctuations. For further information or to discuss the value of your property please contact: Richard Gadd
Transactional values continue to range from £6,250 to £15,000 per acre for arable land and between £5,000 to £11,500 per acre for grassland.
National Farms Agency
Farmers and institutional investors have
richard.gadd@fishergerman.co.uk
07966 481487
fishergerman.co.uk
Regional property successes across the rural sector
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Willey Wood Farm, Moorgreen, Nottingham
Land at Cherry Willingham, Lincoln
FOR SALE – 130-acre organic grassland farm together with an historic farmhouse. Available as a whole or in two lots
FOR SALE – 160 acres of productive commercial arable land on the edge of a large village
Guide price – £1,600,000
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Guide price – £1,025,000
SALE AGREED
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Land at Cottam & South Leverton, North Notts
Egmanton Wood, Wood Lane, Egmanton
FOR SALE – 100 acres of productive arable land. Available as a whole or in two lots
SALE AGREED– 91.63 acres if attractive predominantly conifer semi-natural ancient woodland
Price on Application
SALE AGREED
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Guide price – £450,000
SOLD
Land at Station Road Orston, Newark, Notts
Rainthorpe Farms, Lincolnshire
SALE AGREED – 58.17 acres of productive arable land with road frontage
SOLD –3,204 acres of arable land located across 7 principal holdings
Guide price – £450,000
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Guide price – £25,000,000