Farm Land Prices

Farm land prices continue to rise sharply in Cumbria after a farm near Longtown sold for just short of £1 million last week.

The news comes soon after 12 acres of farmland belonging to a former dairy farm at Southerfield, Abbeytown, sold for £92,000, the equivalent of £7,616 per acre, to a local landowner, making it some of the most expensive bare land sold in recent years.

The former 146-acre dairy farm at The Lake, Blackford, near Longtown, was sold at an auction run by C&D Property Services, Longtown, for £992,000, which equates to £6,795 an acre.

After intense bidding, the farm, comprising a three-bedroomed farmhouse, adjoining barns and a large range of modern dairy and livestock buildings, was sold to an Irish businessman.

Just as residential property prices have slowed, so the value of farmland has soared.

According to figures released by Lloyds TSB, nationally the cost of an acre of agricultural land rose by 17 per cent in 2005 from £3,108 per acre in 2004 to £3,630 per acre, well above the equivalent figure for house prices.

Although land for sale is cheapest in Scotland (£2,813 per acre), the average value of a farm in Scotland is higher than elsewhere – £766,704 compared to £575,735 for the UK as a whole, reflecting the larger size of farms north of the Border.

In Cumbria, farmland for sale and property is still fetching good prices, despite claims that farmers are suffering considerable hardship over the backlog in payments of the single farm payment.

The new system awards a single annual subsidy for each farmer for looking after their land.

Date: 30th June 2006
Source: News & Star