Demand for farm land declining

[Great In Grass]

Demand for farmland in the South West has further decreased, having now been declining for the last 18 months, according to the latest RICS / RAU Rural Land Market Survey.

Respondents are highlighting uncertainty over Brexit and insecurities over future subsidies, as well as low commodity prices as the key factors hindering the market.

Alongside the decline in demand, the amount of land available for sale has also decreased across the region, with 17% more respondents noting a decline in availability (rather than an increase).

The lack of demand for rural land is impacting prices across the region. Farmland prices stood at £7,940 per acre in H2 2016 – this is down 7% albeit prices did pick-up slightly during the second half of the year.

Source: The Cornish Times

 

[capfits]

This is what you are looking for.
http://www.rics.org/uk/knowledge/market-analysis/ricsrau-rural-land-market-survey-h2-201
Can find the PDF with more data on this page.

 

[joe soapy]

Demand for farmland in the South West has further decreased, having now been declining for the last 18 months, according to the latest RICS / RAU Rural Land Market Survey.

Respondents are highlighting uncertainty over Brexit and insecurities over future subsidies, as well as low commodity prices as the key factors hindering the market.

Alongside the decline in demand, the amount of land available for sale has also decreased across the region, with 17% more respondents noting a decline in availability (rather than an increase).

The lack of demand for rural land is impacting prices across the region. Farmland prices stood at £7,940 per acre in H2 2016 – this is down 7% albeit prices did pick-up slightly during the second half of the year.

Source: The Cornish Times

That seem pretty stable to me. Quite a few years ago a 14 acre field would buy a decent tractor, much the same as now.
Farmings problem is that we have not had the massive inflation in food prices that everything else has had.
When that correction comes it will be brutal

 

[Great In Grass]

That seem pretty stable to me. Quite a few years ago a 14 acre field would buy a decent tractor, much the same as now.
Farmings problem is that we have not had the massive inflation in food prices that everything else has had.
When that correction comes it will be brutal

That's was my thinking when I read the article so thought it was worth posting.

 

[Bald Rick]

Quality land will always sell at a quality price though.

An interesting question to pose is:

Do we want to see cheaper land values?

 

[Tarw Coch]

That seem pretty stable to me. Quite a few years ago a 14 acre field would buy a decent tractor, much the same as now.
Farmings problem is that we have not had the massive inflation in food prices that everything else has had.
When that correction comes it will be brutal

Do you think we will see massive inflation in food prices?

 

[Still Farming]

No decline around here as lots of "good" land goes for houses and farmer's fight for land to "roll over" on ???

 

[joe soapy]

Do you think we will see massive inflation in food prices?

Yes i think its inevitable. It only takes 1 grain of wheat less than the world wants to spark massive hike,
China is embarking on a plan to increase its food stock reserve, by comparison with the western world its currently quite small.
Expect to see them swoop on the markets in a repetition of what they did in the recent past

 

[Tarw Coch]

Yes i think its inevitable. It only takes 1 grain of wheat less than the world wants to spark massive hike,
China is embarking on a plan to increase its food stock reserve, by comparison with the western world its currently quite small.
Expect to see them swoop on the markets in a repetition of what they did in the recent past

They've certainly be seen to do it with other commodities,usually leads to a boom as they buy followed by bust as they suddenly pull out.

 

[joe soapy]

They've certainly be seen to do it with other commodities,usually leads to a boom as they buy followed by bust as they suddenly pull out.

Last time with grain they had hundreds of traders poised to all press the buy button at once, took the markets completely by surprise

 

[Tarw Coch]

Last time with grain they had hundreds of traders poised to all press the buy button at once, took the markets completely by surprise

Cunning plan, leaving everyone else to pay higher prices due to supply and demand.

 

[GTB]

Do we want to see cheaper land values?

No. It would be a disaster for us all, even those wanting to start up, because the banks wouldn't be too keen to lend someone money to buy a depreciating asset. And even if they did they would sting them on the interest rates.