Price of Farmland

[Pie face]

What do folks think will happen in the near term say 1 - 2 years with prices? I see a lot of reasons for farmers to be gloomy but land values seem to be at odds with that sentiment.

 

[Wombat]

Lot of external money sustaining values

 

[Happy]

Will depend if IHT rules are changed in budget.
If not, doubt there will be big change in prices. Plenty non farming money out there looking for a home.

 

[Pilatus]

What do folks think will happen in the near term say 1 - 2 years with prices? I see a lot of reasons for farmers to be gloomy but land values seem to be at odds with that sentiment.

Surely the price of farmland in the Uk and many other countries has little to do with its agricultural productivity capacity, or at least that is the case on the Cotswolds.
2 nice 1000 acre farms near me sold last year,one bought by a Dane ( fashion shop money) the other bought by German money( Industrialists with world production facilities) another 600 acre farm in process of being bought with rollover money. I guess some on here may buy adjoining land if they own their own farm outright and if children interested in farming, very much a horses for courses situation I would have thought.

 

[teslacoils]

Recession. Close to zero interest rates. What's not to like about farm land?

 

[Formatted]

You might not see an increase in farmland prices in the next decade but its certainly not going to reduce

 

[Pilatus]

What do folks think will happen in the near term say 1 - 2 years with prices? I see a lot of reasons for farmers to be gloomy but land values seem to be at odds with that sentiment.

I think any TFF members that have no connection with farming will automatically think farmers are making a fortune, when the see how much farmland is selling for. They somehow need to be educated/told that most farmland is purchased with funds created from industry or investors that have nothing whatsoever to do with agriculture. “But ignorance is bliss to some who wish to know,no different”.

 

[Hfd Cattle]

250 acre farm with decent house and buildings just sold for 5 million in Hereford ......3 bidders at auction competing ,all farmers !!

 

[Campani]

I think any TFF members that have no connection with farming will automatically think farmers are making a fortune, when the see how much farmland is selling for. They somehow need to be educated/told that most farmland is purchased with funds created from industry or investors that have nothing whatsoever to do with agriculture. “But ignorance is bliss to some who wish to know,no different”.

True, but a lot of farmers could sell their land and live comfortable lives in retirement. A lot of the general public don't have that option. A millionaire on paper is still a millionaire.

 

[GeorgeK]

In 4-5 years when BPS cuts are being felt there may be more land on the market and fewer farmers interested, so a slight fall in value? I would predict there may be quite a few small, family farms up for sale once BPS is gone

 

[Werzle]

250 acre farm with decent house and buildings just sold for 5 million in Hereford ......3 bidders at auction competing ,all farmers !!

Crazy money but the land probably av 13-14k /acre if you deducted the 1.5 million main house, bungalow and offices. Some bigger better set up farms for sale in wales look pounds better value and with all the go-getters i watch on the likes of farmio etc i cannot see why they arent snapped up. Gap between the worst and best land has got bigger and could be as wide as 10k.

 

[midlandslad]

Will the non farming money still be there if they see no return and no inheritance tax reliefs?

 

[Werzle]

Will the non farming money still be there if they see no return and no inheritance tax reliefs?

There not making anymore and a fair bits going to be covered in trees so i cant see prices dropping

 

[Hfd Cattle]

There not making anymore and a fair bits going to be covered in trees so i cant see prices dropping

Coupled with the amount of land gone into houses around Hfd there is a lot of money to be rolled over into something .

 

[Werzle]

Must make farming a doddle for those that can cash some development land or conversions

 

[Pie face]

I think any TFF members that have no connection with farming will automatically think farmers are making a fortune, when the see how much farmland is selling for. They somehow need to be educated/told that most farmland is purchased with funds created from industry or investors that have nothing whatsoever to do with agriculture. “But ignorance is bliss to some who wish to know,no different”.

Last 2 local farms sold 150 and 270 acres were both bought by farmers. The largest was bought by a big farming operation that seems to be continually expanding while the smaller one was just bought by a neighbor who hasn't bought land for 50 years - where the money came from may be another matter.

 

[Clive]

What do folks think will happen in the near term say 1 - 2 years with prices? I see a lot of reasons for farmers to be gloomy but land values seem to be at odds with that sentiment.

land values have nothing to do with farming

land ownership is investment, not trading

 

[Clive]

Last 2 local farms sold 150 and 270 acres were both bought by farmers. The largest was bought by a big farming operation that seems to be continually expanding while the smaller one was just bought by a neighbor who hasn't bought land for 50 years - where the money came from may be another matter.

clearly both have money to invest - they will not be funding land purchase from farming ...... not even close !

 

[Homesy]

Woodland is now making up to 8K per acre. Can't see farmland dropping much.

 

[Danllan]

land values have nothing to do with farming

land ownership is investment, not trading

I think that confusing value with price is the problem for anyone wondering why non ag people are buying it up.