Farmland values are becoming increasingly polarised with buyers now focussing more attention on cropping flexibility and yield potential, according to the latest research from Estate Agents Savills.

Savills said the trend was highlighted by its farmland indices for Q2, which show a 4.4% increase in prime arable land values for England; arable land averaged £8,138 per acre in the second quarter of 2013. Grade 3 livestock land values rose to £5,531 per acre, a 0.9% increase.

For the year to date prime arable values have increased by 6.4%, though Savills had predicted increases of 8.8%.

The Estate Agents' farms and estates director Alex Lawson said, "It is increasingly clear that buyers are further defining their requirements in terms of land type, acreage and location. For the right opportunity top prices continue to be paid, particularly where this involves adding a block of land onto an existing holding as well as for the best all round packages to new tax driven investors, but the range of values and levels of interest can vary quite significantly.

"The high prices often achieved for blocks of prime arable land make mixed holdings, where the residential market is still fairly subdued price wise look good value."

In Scotland, where the farmland market has started late this year, values remain unchanged for the past six month with prime arable land averaging £7,449 per acre and grade 3 livestock at £2,733 per acre.

The amount of land up for sale was comparable to the same period in 2012. The acreage on the public market fell by 1% on the same period of last year at 58,007 acres in England, but Savills pointed out that this is substantially below the five-year average for 1998-2005 of 76,916 acres. In Scotland, however, the half-year drop was much more dramatic, at 21%.

Analysis of buyers registered with Savills shows that just 5% are from outside Great Britain and 30% of those looking to buy a farm or estate are focused on Scotland.