Farmland seems to beat the credit crunch
Farmland has long been seen as the poor relation of the UK property market, but throughout 2008 it was undoubtedly the best growth sector. This trend continues and while residential property values have fallen by over 20% and commercial property has been heading the same way, farmland has come to the fore.
(Source: Farmers Guardian, 06 Mar 2009)
Over the past five years, agricultural land values have increased by 135% and growth in 2008 alone has exceeded 20%.
It is interesting to note that smaller amenity blocks still out-perform the general market place.
These increases in value are long overdue but not unexpected. Rapid increases in wheat prices over the last two years have driven prices up. Now the strength of the euro means the value of Single Payments have increased. If the euro stays strong relative to sterling we can expect another increase in SPS payments for 2009.
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