Optimism Returns to Farm Sales Market
Our Head of Farm Sales, Malcolm Taylor looks at the current landscape and the opportunities to be had in this year’s farm sales market.
Snapshot of the market
As we look forward to the 2023 farm sales market it seems only right to take time to reflect on the year that has gone. We all remember the highs of the spring and early months of 2022, which seen interest from new buyers looking for forestry and natural capital opportunities pushing land way beyond traditional values and some exceptional outcomes for our clients.
In 2023 the landscape looks different again. Stock levels remain low as rising interest rates, and the cost of money from the lending institutions increasing both act as deterrents. But there is no shortage of individuals looking to purchase good quality farmland.
Following the disastrous minibudget, we are starting to see confidence from investors return, particularly from down south. This is fuelled by growing awareness around how precious land is as a resource, be it for food production, natural capital solutions, renewable energy sources and the contribution to the wellbeing economy.
An increase in the cost of inputs continues to impact the viability of some farming businesses and with a lack of any detail around Government grant schemes both sides of the border, it is inevitable that more farms will come to the market in 2023.
What can you expect for your farmland?
Average arable land and the best pasture-land values have been relatively steady but there is still limited supply and continuing demand, especially where neighbours have the chance to buy. Private transactions remain popular particularly where speed and privacy are key, or if there’s likely to be a limited market.
The value of grazing and hill land, which has been fuelled by unprecedented demand from investors looking for commercial tree planting is perhaps steadying a little but is further bolstered by interest in natural capital, including peatland restoration and rewilding projects, although values are very site specific making it difficult to apply averages.
Price Per Acre
Best Arable £8,000 – £15,000
Commercial planting £5,000 – £8,000
If you are thinking of putting your farmland on the market, our Head of Farm Sales, Malcolm Taylor will be pleased to discuss your requirement. Email firstname.lastname@example.org or call 01307 462516.
Senior Partner, FRICS ACIArb
Rural Land Management
Tel: 01307 462 516
About: Malcolm is Bell Ingram's Senior Partner and heads up the company's Forfar office, where he specialises in farm and estate management, including the provision of agricultural rental advice and acting as an expert witness. He is the immediate past chairman of the RICS in Scotland and remains actively involved with the Institution. Malcolm is also head of Lettings within Bell Ingram. Interests: AMC Agent, Corporate Estate Management, Rural Land Management, SRDP Applications, FRICS Registered Valuer.