Forecasts for farmland

Our predictions did not factor in a global pandemic or the impending economic fallout, but as it stands the value drivers considered remain largely unchanged.

Brexit trade negotiations and impending agricultural policy reform continue to be the core influences on commercial farmland values going forward, while amenity farmland is expected to be in higher demand than previously forecast as urban dwellers seek more green space.

There is also the potential of continued quantitative easing measures by central banks, while recognition of the importance of land in delivering essential environmental services continues to gain momentum.

While the farmland market is expected to remain strong in light of global uncertainty and a refocus on domestic food security over the coming months, the sector is poised for significant change as impending subsidy reform and trade negotiations continue to develop in detail.

The government also hasn’t ruled out toying with the political football of capital taxation changes, which could impact land buying or selling positions for many.

Time will tell where the balance lies between those willing to progress and adapt and those simply wanting to capitalise on their asset. For those undecided, strategy discussions are possibly more important now than ever.

Rhydian Scurlock-Jones is Head of Rural at Savills Telford