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— Knight Frank, 07 October 2022
The average value of farmland is now back almost exactly to the peak seen in the autumn of 2015, according to new results from the Knight Frank Farmland Index.
Land values rose again in the third quarter of this year, taking annual growth to 13%.
Against a backdrop of mounting global economic uncertainty, exacerbated in the UK by Kwazi Kwarteng and Liz Truss's badly received mini-budget at the end of September, farmland outperformed all the other asset classes that we track during the past three months. Over a 12-month period it was only just bested by gold.
It seems that once again farmland is continuing to perform its traditional safe-haven role, acting as a potential hedge against inflation supported by ongoing demand from tax and environmentally driven buyers. Ms Truss's growth agenda and mooted planning reforms could also see more farmland required for new developments and infrastructure.
Given the continued imbalance between supply and demand, which shows little sign of unwinding, the prediction is that farmland values will hit a new high by the end of the year.
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