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Wheat price could contribute to land shortage

Low wheat prices is one of three reasons why the supply of farmland could halve next year.

(Source:, 27 Oct 2009)

The others are the level of high-value driven sales in 2008, and the forthcoming election.

Strutt and Parker’s Charlie Evans form the company’s estate and farm agency department says farmers struggling with low wheat prices are wanting to spread their costs over as large an acreage as possible – making them potential buyers and not sellers.

“The second reason is that 2008 saw a rise in the farmland market. Values had doubled in two years and there was a large acreage being sold by landowners ‘profit taking’ from the land.

His third reason is the election next spring. “Traditionally elections cause the market to slow down considerably as the market waits to see who will be in power and considers what effect - if any - the change of Government will have on farming and property transactions.”

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