The average value of arable farmland sold in Q3 2021 was £9,700/acre, up from £9,000/acre in Q2.
However, given there is a relatively small number of transactions each quarter, the average for the whole of 2021 may be a more reliable measure.
The arable average for the whole of 2021 is £9,200/acre, which has been the average since 2017. Almost 60% of sales agreed during 2021 have been at £8,000-10,000/acre, and a shrinking proportion is selling for over £10,000 – although there were several sales at this level during Q3 2021.
The average price paid for pasture land during 2021 has been £7,100/acre, and it has been at this level since 2019. As with arable land, a shrinking proportion is selling for over £10,000.
Figures 4 & 5: Average, lowest and highest sale prices of arable and pasture farmland (£/acre)
N.B. Data is based on sold (exchanged) prices for vacant arable and pasture land only (i.e., it excludes the value of houses or buildings). The year is when the farmland was sold (exchanged) and is for whole years unless otherwise stated. Although we have stripped out the value of buildings and houses, the data can still be affected by differences in the quality and location of the land sold. Therefore, they should only be used as a broad indicator of changes in prices. 2021 figures cover Q1-Q3 only.
Figure 6. Estimates of bottom 25% and top 25% prices for arable and pasture farmland by region
N.B. The prices are based on the opinions of our regional agents, as it is not possible to calculate reliable regional values based on the small number of sales in each region. Prices are for vacant arable and pasture land only (i.e. it excludes the value of houses or buildings). Bottom 25% means if 100 farms were valued, the price of the 25th farm from the bottom. Percentage annual change is the change from the same quarter in the previous year.
All data in this market report is from Strutt & Parker’s Farmland Database of privately and publicly marketed farmland over 100 acres in England. It has recorded detailed information on the farmland, buildings and soils as well as buyer and seller profiles since 1996, and so is one of the most comprehensive databases available. What makes it different to other databases is that it records sold prices (i.e. what the farm exchanged contracts for) as well as guide prices, and so is a more accurate reflection of actual market conditions as guide prices can overstate or understate the prices that buyers are willing to pay. The national prices stated in this report are based on sold prices. Once a farm is exchanged, we have assumed it is sold, following HMRC custom.
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