Agricultural Review 2009
Read the key points of our Agricultural Review 2009
With 12 offices across Scotland from the Borders to Inverness, and active in land sales, valuations and rural property management we are well placed to review the Agricultural market.
Key points in the review include:-
- Prime farmland prices generally steady
- Interest in farms for sale primarily from neighbouring farmers.
- Strong demand, particularly in the East Coast, for farms with good fixed equipment and sufficient land to support a family farming business.
- Weaker demand West Coast for small livestock farms.
- A general decline in farmland acreage for sale.
Average land values
- Good arable £4500 - £6000+ per acre
- 2nd Class arable/silage £3000 - £4500 per acre
- Permanent Pasture £1200 – £3300 per acre
- Rough Grazing £700 per acre
- White Hill £100 - £300 per acre
Simon Brown, head of CKD Galbraith’s farm agency department, said: “Although there has been a decline in the acreage for sale, prices are not declining significantly. A farm in the right place with the right equipment will attract strong interest and it is clear that the Scottish Government’s support and prioritisation of agriculture helps strengthen the market. We have been instructed to sell a wide range of farms included bare land properties.”
- 60 rent reviews conducted by the firm.
- Vast majority of reviews agreed amicably.
- Wide range of rent increases.Larger increases, 30% and above, generally on farms which had not been reviewed for many years.
- Rents per ewe have been agreed between the range £9 and £11.
- Rents for arable land have ranged from £22 to £50 per acre in the north and west of Scotland and £60 to £72 per acre in the east of Scotland.
- Strong demand for agricultural land and holdings, particularly for livestock units.
Chris Addison-Scott, head of CKD Galbraith’s rural department, said: “Many of the farms reviewed had not been reviewed since the mid 1990s, an average of about 14 years ago. This reflects the fact that landlords took cognisance of the difficult conditions tenants experienced for many years.
“The vast majority of rent reviews have been agreed amicably with about a third of tenants using professional advisors, including solicitors, land agents and experts to advise them on the rent properly payable, and to conduct the review on their behalf.
“Demand for agricultural land and holdings to let is strong particularly for livestock units. This is a reflection of better commodity prices for beef and sheep and the expected changes to the Single Farm Payment regime in 2013 where it is likely to be based on the area of land farmed as opposed to the current scheme which is based on the historic claims of farmers in 2000 – 2002.”