According to latest research figures by UK land experts Smiths Gore, prime arable land in Scotland is currently averaging at just over £5000 an acre with the higher end going for over £8000 per acre. John Coleman, Head of Residential and Farm Agency at Smiths Gore in Scotland, says that average values in Scotland are continuing to edge up, mainly due to demand outstripping supply and the exceptional prices being paid for some. "Some of the larger sales details are still to come in, but it looks like prices will be around 5% up on this time last year, despite the lower end remaining much the same at £3000/acre."

Coleman says that although the buyers of Scottish farms are predominantly local Scottish farmers, there has been an increase in interest from all over the UK. "Smiths Gore's applicant database shows that a great number of prospective buyers from other parts of Britain, especially England, where prices have exceeded £10,000/acre, have been looking at Scottish farms, no doubt attracted by the comparative value for money - particularly on the high quality arable units. There is much demand for farms between £2m and £5m, but with few farms of this size and value available it is obvious that demand will continue to exceed supply, which means that prices will continue to rise, making Scottish farms an even more attractive investment"
Smiths Gore reports that smaller farms of up to 250 acres are dominating the market and that less than 20 farms of over 400 acres have been offered for sale in Scotland so far this year. Smiths Gore has been particularly active in the north east of Scotland with two Aberdeenshire farms selling well above their asking price: The Ward and Broadley Farm - mixed arable and livestock with 259 acres and development potential - at offers over £850,000, and Nether Hawkhillock - a well equipped livestock farm of 244 acres - at offers over £950,000.

Coleman warns that smaller and more marginal farms will need to be competitively priced to sell quickly even though there are budgets of up to £5 million available for the best land and equipped farms. "Just because the average price is going up doesn't mean that the smaller units can expect a premium, and sellers should be realistic in their expectations. Larger farms in good condition on the other hand can anticipate record breaking prices."