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As the 2024 farmland market draws to a close, we might conclude that little has changed since 2023. Indeed, the statistics for the past few years have remained fairly consistent.

The total acreage offered for sale across the country has changed very little, although as always there are regional variations. We have perhaps seen more farms for sale in the eastern counties than for some time, while in the central counties, offerings have remained rather slim.

Accordingly, it is little surprise that prices have remained fairly consistent. There is very little arable land which has sold for less than £10,000 per acre, while some parcels have achieved £12,000 – £15,000 per acre, or even more where there is local competition.

Large complete farms have as usual been in short supply. Rollover buyers who have been unable to find a large farm in 2024 will no doubt be waiting anxiously to see what comes on the market early in 2025. However, the big news in 2024 is of course the recent Budget, and it will be interesting to see what effect this might have on the market next year.

Farming profits have been squeezed for a couple of years now with increased fuel and fertiliser prices and with challenging weather. Some sectors will feel the effects of national insurance and minimum wage changes more than others. The fruit and vegetable sector in particular will notice the difference.

Increased capital gains tax rates might give a greater urgency to rollover buyers, but the inheritance tax changes might decrease the demand from those looking to shelter their wealth in farmland, and it might increase the supply of farms to the market if retiring farmers are more encouraged to sell. That said, agricultural land will continue to be a better shield against inheritance tax than most other investments, even if the reliefs are not as good as we have been used to.

With falling interest rates, it seems unlikely that the banks will be pushing struggling farmers into a sale, so I don’t expect the supply of farms coming onto the market to change massively. Likewise, whatever the tax changes, there remains a strong underlying demand from farmers to acquire additional land locally.

No doubt we will see some changes in 2025 if the supply of land increases significantly, or if the demand falls significantly. Neither of these events is assured, but we shall be watching the market with interest.

Robinson & Hall has been the foremost regional agent for agricultural land in our area since 1882. Few sales take place in the region where we do not act for either the seller or the buyer, and our local knowledge is unrivalled. We also purchase many farms across the region and across the country for our expanding farmer client base.

For more information or to discuss selling or buying farm and land, please contact me.