Farmland values continue to increase

"Between 1 July and 15 August, 17,200 acres of land were brought to market – compared with over 17,100 acres in the same period in 2010," he said.

"So far this year we have seen equipped farm values outperform bare land, a trend which continues in our latest data. Since 1 July, equipped values have increased 2% whilst bare land values have increased 1%, bringing growth over the year to 11% and 7% respectively."

Meanwhile, despite overall supply being consistent with this time last year, supply has increased in six out of eight English regions, including a 46% increase in the North West.

Dr Jason Beedell, Head of Research at Smiths Gore, said: "The East Midlands suffered a drop in supply by 34% or 1200 acres compared with 2010. Looking back at the data, we can see that the East Midlands market was unusually active in 2010, and activity levels this year are comparable with 2009."

Some farmers have marketed their land because they think that land prices are reaching their peak following last year’s good harvest and subsequent prices; farmers are also alert to the fact that there are plenty of willing buyers.

Wordsworth said: "We do not think that prices have peaked yet. Our farmland model indicates value growth of 7% for both 2012 and 2013.

"This growth is based on the continuing inbalance of demand and supply – there is still insufficient supply to satisfy the continuing strong demand from farmers and non-farmers."

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