2023 marked a shift in the British farmland market. The supply of farmland available for public purchase grew by 20% compared to the previous year. This increase brought the total acreage on the market to 157,200 acres. While this figure surpassed the five-year average by 15%, it remained slightly below the average of 162,000 acres seen from 2003 to 2016.

Experts at Savills, a leader in rural research, believe this trend will continue. They forecast an increase in publicly marketed farmland, predicting around 180,000 acres per year by 2028.

Why Is Farmland Supply Increasing?

Andrew Teanby, an associate director at Savills, attributes this growth to shifts in agricultural policy and practices. The agricultural transition, a series of changes affecting farming policies and practices, is a key driver behind this increase.

The Boom in Farm Machinery Sales

In conjunction with the rise in farmland supply, 2023 also witnessed a 71% surge in farm machinery sales compared to 2015. This uptick is seen as a reflection of the changing agricultural landscape in Great Britain. Retirement and policy shifts have become more common reasons for selling farm machinery, differing significantly from the scenario in 2015 when new agricultural policies were not yet in play.

Predictions for Farmland Values

Despite the increase in farmland availability, average values are expected to see modest growth, albeit at a slower rate from 2024 onwards. Savills predicts a diverse growth pattern across different types of land:

• Grade 3 farmland is expected to see an average annual growth of 2.5%.
• Grade 3 pasture land might witness a growth of 2% per annum.
• Prime arable land, primarily used for food production, is forecasted to have a 3% annual increase in value over the next five years.

Market Influences and Future Outlook

Alex Lawson, head of Savills rural agency, points out that while certain factors like property attributes and local dynamics (such as neighbour interest) significantly impact individual sales, the market is also subject to global and economic shocks.

In summary, the British farmland market is experiencing a transformative phase with increased supply, booming machinery sales, and a steady, if modest, growth in land values.