Despite rising costs and economic uncertainty, farmer demand for agricultural land remains strong
Farmers have accounted for nearly two-thirds of farmland purchases in England this year, the highest proportion in more than a decade, despite mounting financial pressures on the industry.
New figures from Strutt & Parker show average arable land prices reached ÂŁ10,600 per acre during the first nine months of 2026, while pasture averaged ÂŁ8,700 per acre.
Both averages have been revised slightly upwards following the availability of additional sales data, although fewer transactions are taking place at the highest prices per acre.
Sam Holt, head of estates and farm agency at Strutt & Parker, said the market was proving resilient despite difficult conditions facing agriculture.
“England’s farmland market continues to demonstrate resilience, with average values holding firm despite the challenging conditions currently impacting the agricultural sector.”
The latest analysis also reveals a sharp decline in farmland coming onto the open market, helping to maintain the balance between supply and demand.
Just 22,800 acres were publicly marketed during the third quarter, almost a third fewer than the 33,800 acres offered during the same period last year.
The figure was also 16% below the five-year average, highlighting the continued shortage of farmland available to buyers.
Despite concerns about rising costs and taxation, the figures suggest there has been no widespread rush among farmers to sell up.
A total of 260 farms were publicly marketed during the first nine months of 2026, just six more than a year earlier.
However, agents have noticed a modest increase in smaller arable farms of between 100 and 150 acres being offered for sale.
Demand has also shown signs of stabilising, with a slightly higher proportion of farms marketed last year now sold or under offer compared with 12 months earlier.
Farmers have emerged as the dominant buyers, accounting for 62% of purchases so far in 2026, the highest proportion recorded in well over a decade.
Mr Holt said the figures suggested that some farming businesses remained willing to expand despite rising costs and wider economic uncertainty.
The gap between buyers' and sellers' price expectations has also narrowed, helping more transactions progress.
Although private and institutional investors have accounted for a smaller share of purchases this year, farmland continues to attract interest as a long-term investment.
Uncertainty ahead of the Autumn Budget is also influencing market activity, particularly over potential changes to taxation.
Mr Holt suggested that the recent slowdown in new listings could partly reflect sellers wanting to complete transactions before any changes to the tax regime are announced.
Strutt & Parker expects relatively few additional farms to be launched onto the market before the end of the year.
Speculation that the Treasury could reverse inheritance tax reforms introduced earlier in 2026 has also raised questions over future buying and selling decisions.
Mr Holt suggested that such a reversal could encourage more buyers into the market, although any decision would depend on wider pressures on public finances.
Looking ahead to 2027, high fuel and fertiliser costs, disappointing yields and difficulties accessing the Sustainable Farming Incentive (SFI) could place further pressure on arable businesses.
These challenges may encourage more farmers to reconsider their land holdings next spring, potentially bringing additional properties onto the market.
However, Mr Holt remained confident that demand would absorb any increase in supply, saying there was "sufficient scarcity in the market that any increase in supply will be met by demand."