Price of farmland up 300pc in decade

The price of top quality farmland has risen by 300 per cent over the past 10 years, new figures revealed today.

Prime sites in Shropshire are still among the most expensive in the country, according to county land agent Savills. It said despite the economic gloom, county farmland was selling for well over £7,000 per acre, compared to just £2,500 per acre it was achieveing in 2002.

Rhydian Scurlock-Jones, Telford-based spokesman for Savills, said today: "The Shropshire farm land market continues to prosper despite difficult economic times.

"Farmland supply is still restricted in our county so values remain high. That said, it's still the best quality land in the most sought after locations achieving the prime price tag."

Mr Scurlock-Jones said buyers tended to be either British or international investors.

And he predicted prices would rise even further – up by another five per cent this year and even 36 per cent by 2017, because the rising population would increase demand for crops.

Recent sales have seen the 600-acre B J Ward farm at Brocton and Havenhill selling for more than its guide price of £5 million.

The 350-acre Lyneal Wood Farm, near Ellesmere, sold for more than £3.25 million. Ashwood Farm at Ash Parva, near Whitchurch, sold for more than £2.5 million to a commercial dairy farmer.And the 350-acre Chyknell Hall Estate, near Bridgnorth, sold for over £6 million last year.

Mr Scurlock-Jones said: "We have experienced land selling for well over £7,000 per acre in Shropshire and Staffordshire."

But Oliver Cartwright, Shropshire spokesman for the National Farmers' Union, said: "The fact that land prices have shot up will be of little consequence to many farmers unless they are looking to sell up or buy extra land.

"A lot of weight is attached to what land is worth but for the industry it is what is being produced on that land and the price being paid for produce at the farm gate that is of real importance, especially as other costs are spiralling like fertiliser, feed and energy.

We need to see a fair price paid to farmers i as there are massive retail profits not being passed back."