Farming News - English farmland is best asset during recession
News
English farmland is best asset during recession
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Values "Equipped land values rose by 2% in the final quarter and by 13% over 2011 as a whole. This impressive rise in values followed a 16% rise in 2010, so values have risen by a third since the recent low point in the summer of 2009."
"Bare land values have also risen, by 3% in the final quarter and by 12% in 2011 as a whole. Although bare land values rose slightly more slowly than equipped ones, their greater resilience in 2008 and 2009 means that bare land values have risen by 50% since the start of 2008, making it one of the best performing assets during the recession", says Giles Wordsworth, Head of Farm Agency at Smiths Gore.
| Average price in England £/ac | 4Q2011 (% change since 3Q2011) | 3Q2011 | 2011 whole (% change in year) | 4Q2010 (% change in last 12 months) | 2010 Whole (% change in year) |
| Bare Land | £ 6000 (+3%) | £5800 | 12% | £5400 (+12%) | 12% |
| Equipped farms | £9400 (+2%) | £9200 | 13% | £8300 (+13%) | 16% |
| All land | £8700 (+3%) | £8400 | 14% | £7600 (+14%) | 13% |
Supply – the amount of land for sale
"Although the amount of land for sale remains at historically low levels, there were more equipped farms for sales in 2011 than in 2010 and 2009, and more units for sale in the final quarter of 2011 as well. 2011 was the first time more than 100,000 acres of equipped land was for sale since 2008", says Dr Jason Beedell, Head of Research at Smiths Gore. There were the fewest bare land sales in 4Q2011 for four years but, for the year as a whole, a similar amount of land was marketed in 2011 as in 2010 and more than in 2009 and 2008. But despite this increase in supply, the lack of availability can be seen when the figures for specific farm types in specific areas are examined:
Detailed figures for 4Q2011
All farms 70 farms and parcels of land over 50 acres were marketed in 4Q2011, which is comparable with the numbers marketed during the same period of 2010 (70 properties) and 2009 (69). 13,200 acres were marketed in 4Q2011, which is 33% more than in 4Q2010 (9,900 acres) and 18% more than 4Q2009 (11,200 acres).
Equipped farms (Farms with buildings) 50 equipped farms were marketed in 4Q2011, compared with 47 in the same period of 2010. 35% more land was marketed in 4Q2011 (10,400 acres) than during 4Q2010 (7,700 acres), and 21% more than in 4Q2009 (8,600 acres).
Bare land 20 parcels of bare land were marketed in 4Q2011, which is slightly less than the same period in 2010 (23 properties). The area for sale was 28% higher in 4Q2011 at 2,800 acres compared with 2,200 acres in 2010, and 11% higher than in 4Q2009 (2,600 acres).