Farmland prices continue to climb higher

Increased demand and limited supply have continued to underpin farmland prices, according to a survey by the Royal Institution of Chartered Surveyors.

The opinion-based measure of farmland prices, which draws upon valuations of bare land, rose by 6 per cent over the first half of the year, climbing from £12,715 per hectare to £13,530 per hectare.

A second measure, which includes a residential component, fell by the same amount, with the decline likely to be down to the weakness in the wider housing market rather than in the farmland market. Surveyors expect prices to continue rising over the next 12 months, particularly when it comes to commercial farmland.