Land values continue to rise

With the latest statistics on ever- increasing values of farm land emerging from the latest survey conducted by leading land agents Savills, the question seems to be "recession, what recession?"

Their figures show Scottish average farmland values increased by 4.1 per cent for the quarter, with prime arable land on the east coast performing best, supported by a good potato and wheat harvest. The cumulative growth is 5.8 per cent for the year to date.

Average land values are now higher than at their previous peak in June 2008 The average figure or 4,020 per acre masks the true range of price for Grade 3 land where the value has fluctuated between 3,500 to over 6,000 per acre.

Anna Thomas of Savills Rural in Edinburgh said the limited supply of farmland and the continued strong demand for land had brought about the rise.

And there seems to be more to come, with Thomas adding that there had been a 56 per cent increase in new buyers registering on her firm's database during the first three quarters of 2010, compared with the same period of last year. The average value of Grade 3 arable land in England is over 1,000 per acre higher than Scotland.