12:30pm Wednesday 4th August 2010
The latest RICS Rural land Market Survey shows prices for farmland remain high, driven by increased demand for commercial farmland and a continued lack of supply.
Commenting on the survey, RICS spokesperson, Sue Steer said: “The demand for farmland shows no sign of abating and it continues to outpace supply. As in the previous survey, we are seeing demand from farmers who are keen to expand their production, particularly into neighbouring farms. Given the elevated prices at the farm gate, it seems farmers are willing to pay a premium in order to do so.
“Farmland continues to be viewed as ‘recession proof’ and we are seeing UK and overseas investors purchasing commercial farms as an alternative form of investment which is outperforming other markets. These investors are competing with farmers and keeping prices high.”
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