The farmland market has got off to a slow start this year compared to activity in 2009, with just 2,485 acres launched in the first six weeks of the year – half last year’s amount, says Dr Jason Beedell, head of research at Smiths Gore. 

He says: “Average bare land values have increased 1% so far this year to £4,800 per acre, whilst equipped values have increased 1% to £7,300 per acre. 

“The lack of farms for sale is chronic. Prices are being supported by the lack of supply and also by increasing demand from farmer, investor and amenity buyers, as evidenced by the latest figures on strengthening demand from all types of buyers from the Royal Institution of Chartered Surveyors. 

“We expect significantly more land to be marketed in the next six weeks as the spring market takes off,” comments Giles Wordsworth, Head of Farm Agency. “So far we are not detecting any significant effect, negative or positive, of the forthcoming general election on the market.” 

Overall the area launched is comparable to 2007, but it is a stark contrast to 2008 when 16,202 acres were launched in the first half of quarter one; in 2008 the market was more active due, in part, to pending changes to capital gains taxation encouraging transactions, and a large estate being launched in January of that year. 

All farms 

• 21 farms and parcels of land over 50 acres were marketed in the first half of 2010Q1. This is 22% less than during the same period last year but more than in the equivalent period in 2007 (13 parcels marketed). 
• 2,485 acres were marketed in the first half of 2010Q1, which is less than in 2009 (5,189 acres), but similar to 2007 (2,245 acres marketed). 

Equipped farms 

• 12 equipped farms have been marketed in the first half of 2010Q1, compared with 22 in the same period in 2009. 
• 1,582 acres were marketed in the first half of 2010Q1, which is 64% less than in 2009 when 4,491 acres were marketed. Average holding size has therefore decreased from 204 acres to 132 acres. 

Bare land 

• 8 parcels of bare land have been marketed in the first half of 2010Q1, compared with 5 in the same period in 2009. 
• 903 acres were marketed in the first half of 2010Q1, which is 29% more than 2009 (698 acres). So whilst overall activity has been lower, the bare land market has seen a greater area marketed than last year. The average parcel size has dropped from 140 acres to 113 acres. 

Farm types and regions 

• There has been less early market activity in the East Midlands and South West than last year, otherwise property numbers are comparable. 
• The area marketed is lower in most regions than last year, particularly the East Midlands and South West where 50% fewer properties have been marketed.