As farmers gathered at this year's Royal Highland Show the weather may not have been great but they were buoyed by new figures on land prices. Reaching an all time high, land values in Scotland show no signs of slowing according to Pagan Osborne's Rural and Business Partner, Colin Clark. Land prices have nearly doubled in two years, with farmers achieving well over £4,000 per acre for arable land and in some cases reputed to be reaching over £7,000 per acre.
Good Spring weather combined with the recent rise in cereal prices and the demand for the arable land from Irish farmers have all played a part in the rise of land prices. In 2005, Scottish farmers might have received around £2000 per arable acre increasing by £500 - £1000 the following year but 2007's prices have exceeded expectations.
Speaking after the Royal Highland Show, Colin Clark of Pagan Osborne, said:
"Land prices have been rising steadily over the years, but today's figures are the highest recorded in Scotland. Its great news for farmers and there is a real sense of optimism, especially following the excellent spring which last week's poorer weather failed to dampen.
"Higher land values combined with increased cereal prices, produces greater opportunities for farmers to expand and develop their businesses but a very careful look at the cost of buying additional land at current prices and bearing in mind recent interest rate rises has to made before decisions are made."
