Supply
Our research indicates that the present day turnover in agricultural land remains at historically low levels and is a tiny proportion of the total area farmed – amounting to just 0.5% in England, only 0.25% in Scotland and 0.2% in Wales.
In 2011, the 155,500 acres advertised across Great Britain accounted for just -1% less than during the previous year. With the exception of 2009, this is the lowest annual area marketed since 2003 and 2004 – the years preceding the last CAP reform known as the ‘Mid Term review’.
However, looking at England alone, our research recorded an 11% increase in the volume of publicly marketed farmland last year compared with 2010.
Closer analysis reveals the increased activity was mainly concentrated in the eastern regions of England with rises in the East and South East of 42% and 35% respectively. Interestingly, this is the complete reverse to the 2010 supply pattern, when the eastern regions of England recorded the lowest activity.
The supply of publicly marketed farmland fell in all other regions with the West Midlands witnessing a -14% drop and falls of -3% apiece in the North and South West of England. In Scotland activity fell by -14% with just 31,400 acres marketed during 2011. In Wales, supply halved and was at its lowest since 2006 at just over 7,000 acres.
Values
Savills Farmland Value Survey shows the average value of grade 3 arable land across Great Britain rose during 2011 by 6.5% to £5,612 per acre. This follows an increase of 11% in 2010 and 7.2% in 2009.
Much of this growth occurred in the first three quarters of the year, with prices losing some momentum in the late autumn. The exceptions were the East Midlands and the East of England, where values rose marginally by 0.7% and 1.1% respectively, during the fourth quarter of 2011.
In England the average value of grade 3 arable land increased 7.3% to just under £6,000 per acre. Scottish and Welsh land values followed this pattern and rose by 2.2% and 3.6% respectively.
As already noted the top performer of the 2011 market was quality commercial arable land – our research confirms the strength of this sector with average prime arable values increasing 8.9% in England, 5.5% in Scotland and 4.7% in Wales.
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