Our research shows that just over 120,500 acres of farmland were publicly marketed across Great Britain during the first three quarters of 2014; a fall of -7% compared with the same period in 2013. However, there are significant differences between countries with Scotland seeing a -28% fall, Wales -22% while in England the acreage increased by 4%.

Supply across England continues to be historically low and our records highlight that this year the volume of publicly marketed farmland is the second lowest since 1995 (2004, the year before Single Farm Payment, being the lowest with 114,400 acres being advertised to end September).

Graph 1 illustrates, with the exception of the South West, the West Midlands and the East, that supply in all regions decreased during the first three quarters of the year.

click on graph below to enlarge

Although supply has risen significantly, compared to the same period last year, in the East of England and the South West of England both regions recorded especially low activity in 2013.

Our supply database only records publicly marketed farmland and therefore the figures above exclude the sale of the Co-op farms portfolio, which was sold privately by Savills.

The portfolio, which was distributed throughout England and Scotland, included 17,800 acres of freehold land and an operating farming company also occupying a further 20,000 acres of third party owned land.

It was the largest farming portfolio to be offered for sale for over 20 years and was sold as a whole for £249 million. This equates to an average price achieved for the bare freehold farmland of £10,500 per acre (ranging from circa £7,000/acre up to circa £13,000/acre).

The additional area marketed on behalf of the Co-op or other private vendors, although significant, does not fundamentally alter the current historically low supply situation and its influence on values.

Taken from
Market in Minutes: UK Farmland Market - Q3 2014