Supply of farmland to halve in 2010

The supply of farmland to halve next year is the view of Charlie Evans of Strutt & Parker’s Estate and Farm Agency Department.

Mr Evans says "I expect the volume of land next year to be half of the amount marketed in 2008".

Mr Evans’ view is shaped by three main factors.

The first reason is that at the moment farmers are struggling with low wheat prices which means they need to spread their costs over as large an acreage as possible. "Most farmers are therefore potential buyers and not sellers." comments Mr Evans.

The second reason is that 2008 saw a peak in the farmland market. Values had doubled in two years and there was a large acreage being sold by landowners ’profit taking’ from the land. "Many bought land for £2500 - £3000 per acre in the early 2000’s" says Mr Evans "In 2008 they were given the opportunity to double their money and sell if for £5000 - £6000 per acre and many took it"


The third reason is the election next spring. "Traditionally elections cause the market to slow down considerably as the market waits to see who will be in power and considers what effect (if any) the change of Government will have on farming and property transactions" says Mr Evans

According to Strutt and Parker, there was over 190,000 acres marketed in 2008, 23% more than 2007. "I expect the volume of land marketed to fall below 100,000 acres next year – a level not seen since 2004 when the market was depressed by the, then, uncertainty surrounding Single Farm Payment."

"If I was in the market for a farm, I would look to buy soon, as I am not expecting the usual large volume of land to be marketed next spring" Concludes Mr Evans.