"Farmland prices have increased a further 2% since 30th June, bringing the total price increase so far this year to 10%," said Giles Wordsworth, Head of Farm Agency at Smiths Gore.

The amount of land for sale in England is comparable with 2010 figures. "Between 1 July and 15 August, 17,200 acres of land were brought to market – compared with over 17,100 acres in the same period in 2010. So far this year we have seen equipped farm values outperform bare land, a trend which continues in our latest data. Since 1 July, equipped values have increased 2% whilst bare land values have increased 1%, bringing growth over the year to 11% and 7% respectively."

Increased supply in many regions

"Despite overall supply being consistent with this time last year, supply has increased in 6 out of 8 English regions, including a 46% increase in the North West. The East Midlands suffered a drop in supply by 34% or 1,200 acres compared with 2010. Looking back at the data, we can see that the East Midlands market was unusually active in 2010, and activity levels this year are comparable with 2009", says Dr Jason Beedell, Head of Research at Smiths Gore.

So why are prices increasing?

Some farmers have marketed their land because they think that land prices are reaching their peak following last year’s good harvest and subsequent prices; farmers are also alert to the fact that there are plenty of willing buyers.

"We do not think that prices have peaked yet. Our farmland model indicates value growth of 7% for both 2012 and 2013. This growth is based on the continuing imbalance of demand and supply – there is still insufficient supply to satisfy the continuing strong demand from farmers and non-farmers", says Giles Wordsworth.

DATA for first half of 2011Q3 (1 July - 15 August)

All farms

81 farms and parcels of land over 50 acres were marketed in the first half of 2011Q3 (1

July and 15 August). This is similar to the number marketed during this period last year

(82), and 29% more than during the equivalent period of 2009 (63 properties marketed).

17,200 acres were marketed, which is comparable with 2010 (17,100 acres), and more than in 2009 (11,800 acres).

Equipped farms

59 equipped farms were marketed in the first half of 2011Q3, compared with 53 in the same period of 2010.

14,000 acres were marketed, 6% more than in 2010 (13,200 acres).

Bare land

22 parcels of bare land were marketed, compared with 29 in the same period of 2010.

3,300 acres were marketed in the first half of 2011Q3, this is 17% less than in 2010 (3,900 acres), but more than in 2009 when 2,700 acres were launched on the market in the first half of 2009Q3.

Farm types and regions

The data shows some regional variations. Compared with last year, more land was launched in six of the eight regions this year. The East Midlands experienced the largest reduction in land area coming to market, with just 2,300 acres launched between 1 July and 15 August, compared with 3,500 acres last year.