Arable land outstrips livestock in demand
He said: "This is proof that it is the arable and dairy sectors and not the beef and sheep enterprises that drive the demand for land in Scotland."
This demand for top-quality land has already seen several properties hit 10,000 per acre, with "potato growing" farms exceeding that, although Dudgeon estimated the average price for Grade 1 farms was currently about 7,000 per acre.
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Hide AdArable land rose in value by 12 per cent in Scotland last year against a figure of 3.8 per cent for all land sold and this perhaps disguises grassland values in the west of Scotland which, he reckoned are "under pressure".
"We are definitely moving into a two-tier market with a real thirst for good arable units and a more discerning demand for livestock farms," he said.
Part of the fall off in demand for livestock farms in the past year has been caused by the complete collapse of the Irish economy. Prior to the recession hitting Ireland, six out of seven buyers of grass land farms in Scotland were from across the Irish Sea as their own land market had rocketed on account of development land cash.
Now, according to Dudgeon, unless a grassland farm has special features such as a good location or farm buildings, the value is about 3,000 to 4,000 per acre.
Despite this divide in values, investment in land generally over the past decade has been very profitable, with overall values increasing by 134 per cent in that period. "This is the fourth highest figure for any decade since 1800," Dudgeon stated.