Last year saw sales of farms and farmland in Scotland achieve an average premium of 13 percent.

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The percentage of purchases going to established farmers rose from two-thirds in 2012 to three quarters in 2013.

Whilst the number of arable farms offered for sale increased in 2013, the number of dairy farms dropped to only 6% of the total market.  The scarcity of this type of farm together with an improved milk price meant prices remained high.

"The reason that farm prices in Scotland have continued to rise in capital value over the past few years despite a global recession and margins in agriculture generally tightening can simply be attributed to a lack of supply of all farm types," commented James Butler of Strutt & Parker.  "There are many potential sellers who are holding off going on the market in the belief that there are few better alternatives in which to invest sale proceeds."

Butler continued, "There is some uncertainty on the horizon in 2014 which is also causing sellers to sit tight, with the Independence Referendum in September and the Scottish Government yet to confirm details of a replacement subsidy system for CAP payments which are being reformed and implemented in 2015.  In addition, the weather has a strong influence on when sellers offer their land for sale.  Last year's poor Spring saw low sales compared to the very buoyant summer and autumn when the weather improved considerably.  However, we predict that the demand experienced last year is unlikely to diminish – Scottish farmland continues to be comparatively cheap compared to neighbouring countries and there are many frustrated buyers who failed to secure a suitable farm in 2013.  We also predict that the gulf between prime arable land and the poorest land will continue to widen over the next few years."