Anyone else watching agricultural land prices?

lostinrates

Or is it only me?

I'm still seeing huge variance in pricing locally, but all of a sudden a few things have come on the market at much more reaonable pices, whether land or farmhouses with land. Its as if people who were waiting to see what would happen in the residential market have accpeted its a downwards trend and are splitting into lots and biting the bullet. small plots are still extortionate (seen things like offers over £38 K PER ACRE for four acres...aimed at the horse and pony market, but still!) I don't really follow arable prices so will be looking more closely at them soon.

ETA: thread went in a very arable diretion, but to make it clear I am after predominantly permanant pasture. I'd onsider, if I an get the maximum acrage I want..prices have a long way to go for that...a 20% arable holding but would have to let that.

Generali

lostinrates wrote: »

Or is it only me?

I'm still seeing huge variance in pricing locally, but all of a sudden a few things have come on the market at much more reaonable pices, whether land or farmhouses with land. Its as if people who were waiting to see what would happen in the residential market have accpeted its a downwards trend and are splitting into lots and biting the bullet. small plots are still extortionate (seen things like offers over £38 K PER ACRE for four acres...aimed at the horse and pony market, but still!) I don't really follow arable prices so will be looking more closely at them soon.

Agricultural land prices have been driven up by City bonuses as I believe that farmland can be passed on to the next generation free of IHT.

lostinrates

Generali wrote: »

Agricultural land prices have been driven up by City bonuses as I believe that farmland can be passed on to the next generation free of IHT.

This I know.

GDB2222

Is there a good place to see arable land prices? I always thought around £2k an acre, until a couple of years ago when it went up to £5k an acre. I assumed that was on the back of a trebling in the price of corn.

The market for little paddocks is clearly completely different.

I'd be interested to learn more, actually, so any pointers?

lostinrates

GDB2222 wrote: »

Is there a good place to see arable land prices? I always thought around £2k an acre, until a couple of years ago when it went up to £5k an acre. I assumed that was on the back of a trebling in the price of corn.

The market for little paddocks is clearly completely different.

I'd be interested to learn more, actually, so any pointers?

i look at sale prices in the auction reports in local papers and some local farming press. I used to buy the national farming press too, but budget cuts have meant a restriction in publiction buying

when I first came west 2-3K per acre was reasonable. If I could find £5k with liklyhood of turning back to pasture I'd be happier. If it hits 3K we'd be looking to buy PDQ. Chances are slim though I think. Pony paddocks...agree different market, but lots of these once were agricultural land proper and have been created on division of land. Fair enough, but I think peple might well have overstretched to by these little parcels of horse sick land.

neverdespairgirl

lostinrates wrote: »

i look at sale prices in the auction reports in local papers and some local farming press. I used to buy the national farming press too, but budget cuts have meant a restriction in publiction buying

Do libraries have them? :money:

lostinrates

neverdespairgirl wrote: »

Do libraries have them? :money:

Big ones probably do, but it would cost me as much in petrol to go to one of those, and the parking on top of that.:rolleyes: We do have a local library, its open two mornings a week:D , but no newspapers or magazines;)

Good idea though, I'll pop into the big one next time I'm over there! Thanks

boyse7en

From Knightfrank report Sept 25th 2008 -

English farmland values fell slightly in the third quarter of 2008

• Annual growth has fallen to 27% from a peak of almost 38% last quarter

• The average value of agricultural land is £5,060/acre, up from £3,997/acre a year ago

• Farmer optimism has been dented by falling commodity prices, increased input costs and a
wet harvest

• Prices are forecast to decline further over the next 12 months


My Brother-in-law is watching the value closely, as he bought £3,000,000 worth of Northumberland 18 months ago to extend his milk production

lostinrates

boyse7en wrote: »

From Knightfrank report Sept 25th 2008 -

English farmland values fell slightly in the third quarter of 2008

• Annual growth has fallen to 27% from a peak of almost 38% last quarter

• The average value of agricultural land is £5,060/acre, up from £3,997/acre a year ago

• Farmer optimism has been dented by falling commodity prices, increased input costs and a
wet harvest

• Prices are forecast to decline further over the next 12 months


My Brother-in-law is watching the value closely, as he bought £3,000,000 worth of Northumberland 18 months ago to extend his milk production

Milk should be fairly secure ATM with return though, no? What with complaints of quality from the imported stuff and strong Asian market? I think buying to extend a genuine farming investment is a whole different ball game TBH. Your BiL is presumably farming himself, not having to rely on it being tenanted or managed by someone else. Normal dairy looks good for the first time in ages IMO.

grebbo

UK arable land prices are in a bubble at the moment - driven up by speculation. The yields on current land prices are a joke.

The largest returns for investment in agriculture are in developing countries where land prices remain low, and where it is being brought into production or improved.

fc123

lostinrates wrote: »

Or is it only me?

I am a tiny bit as I have a vague, distant, sketchy Lifeplan brewing for 5 years time.
I learnt from yourself this thing whereby a share of the future value (if increased) goes to the original owner...had never heard of anything like that before.
Although this person is doing something different to me creatively, the essence of what she is doing (currently at a loss) is a dream for me in my ''post young children life''.

http://www.dailymail.co.uk/you/article-1065031/Ewe-exclusive-Isobel-8217-s-woolly-thinking-pays-off.html


http://www.baileyshomeandgarden.com

is also an inspiration plus am addicted to Liz Jones Diary in You mag.
I dream of modest house but with outbuildings for workshops, animals, centre for lost skills....but all products designed and made have contemporary appeal. Great dress, can afford it, looks great.....and it's made at home with some ethics.
I have not a lot of knowledge about agricultural ties etc at the mo...as not relevent just yet....would a few sheep and a weaving shed qualify?

Years ago, I'm sure one could flog London suburban house and buy a small holding in the West.....but it doesn't seem to work like that now. Unless I am remembering things (from 90's) incorrectly. The internet has changed how people can work now.

If the city money was the thing that bouyed up the land prices...surely they will go down again?

Unless we start growing more of our own food again? Mind you, Tesco wouldn't allow it.