The Land Market -

The volume of farmland for sale in the first half of 2024 was about 30% higher than the same period in 2023. According to industry indexes the average value of arable land is now just under £10,000/ac and just under £8,000/ac for pasture. However the actual prices achieved vary widely, depending very much on factors specific to a particular locality and the buyers within it.

Motives to buy go beyond food production and include energy production, carbon capture, biodiversity net gain, development and investment. In areas where there were buyers rolling over their CGT liabilities, (from sale of development land) some sale results were stratospheric! Butler Sherborn has been involved with a number of sales in the Cotswolds where prices achieved have been well in excess of these average figures demonstrating the strength of the market in this area. We do not anticipate any significant change to that for the remainder of the year. However, we will watch with interest this year’s Autumn Statement to see what changes are made to Capital Gains Tax and Inheritance Tax, as any increases in these are likely to impact the market.

Harvest 2024

After a terribly wet winter and spring, with awful conditions for crop establishment, the general harvest trend is that yields are down, but quality is better than expected. However, harvest results appear to vary widely between farms, depending on soil type and management decisions. Some Cotswold farmers have been pleasantly relieved and others want to forget 2024 as quickly as possible and look ahead to 2025.

At the time of writing prices are £175/t for Feed Wheat and £375/t for Oil Seed Rape. These are similar to prices at the same time last year, but significantly lower than August 2023, when Feed Wheat was £240/t and Oil Seed Rape over £500/t. Costs of production do not decrease and the Basic Payment subsidy is reducing each year, as it is phased out by 2028, so margins are seriously squeezed. The uptake of the Sustainable Faming Incentive is increasing, as farmers try and replace some of that lost income. It will be interesting to monitor how UK food production is affected over the coming years, as more land is taken out of production in favour of environmental management. This is certainly something for the policy makers to keep a close eye on, especially when considering UK food security.

The Cotswolds remain a hugely popular area in which to live and own land. We are enjoying another successful year selling land, farms and equestrian property within the area, and as the Cotswolds Property Specialist, Butler Sherborn’s knowledge of the market is second to none, as is our commitment to achieving the best possible sales for our clients.

For a confidential sales appraisal of your property, or any other advice on rural land matters, do contact Richard Greasby richard@butlersheborn.co.uk 01285 883740 or Ben Way ben@butlersherborn.co.uk 01452 830731