Lincolnshire farmland reaches record highs
THE value of Lincolnshire farmland is currently reaching record levels and there are no signs of a slow-down.
THE value of Lincolnshire farmland is currently reaching record levels and there are no signs of a slow-down.Bucking the trends in the UK housing market and the downturn in commercial property, farms and land in the East Midlands are in high demand and as a result are commanding high prices.
Being a rural county, Lincolnshire has help set the national trend in land prices.
While the average Grantham farmer may have expected to sell his land at 2,000 to 4,000 per acre 12 months ago, today the same farmland is commanding well over 5,000 per acre, and up to 7,500 in some cases.
So why the rise?
There appear to be four key drivers.
Firstly, after a difficult decade profitability has returned to UK agriculture and those benefiting are looking to expand their farming businesses.
Secondly, land in the East Midlands has attracted plenty of interest from overseas buyers, particularly the Irish and the Danes, to whom UK farmland is affordable compared to their own.
It is also important to consider the nature of land as a commodity.
You can't make anymore of it, much is disappearing to development and the current drive to grow crops for fuel means less is available to grow foodstuffs.
Finally, let's not forget that 'gentlemen's residence appeal'; there are numerous 'lifestyle' farmers in the UK who perceive owning a parcel of our green and pleasant land as, not only a status symbol, but part of their heritage.
So how will values rise? Depending on continued interest from foreign purchasers and the long over due profitability in the UK agriculture, the demand to secure land will continue.
To what level? I am reaching for my crystal ball as I write!
Will Parry can be contacted at will.parry@brown-co.com or on 01476 514453.
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Weather for Grantham
Friday 03 September 2010
Today
Sunny spells
Temperature: 8 C to 19 C
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Sunny spells
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