Farmland prices forecast to rise 5pc in 2013

Prices rose by almost 3pc in 2012 to £6,214 per acre according to Knight Frank’s Farmland Index, driven by a fall in the supply of good farms for sale, and increased demand from private investors.

“English farmland’s bull-run is not yet over, despite the impact of the horrific weather on farming profitability last year,” said Andrew Shirley, head of rural property research at Knight Frank. “The market proved resilient in 2012 and is predicted to gain further ground this year.”