Booming demand for farmland

Demand for commercial farmland has continued to surge ahead with the average price per acre standing at £6,628 in the first half of 2012, according to the Royal Institution of Chartered Surveyors (RICS).

In the six months to end-June, a jump in demand coincided with a sizable downturn in land availability and transactions fell to 115, the lowest level recorded by the RICS Rural Land Survey since the start of 2006.

Across the UK, most areas saw a steady increase in land prices with the sharpest regional rise in the West Midlands and the weakest in Scotland.

Looking ahead, with commodity prices still climbing RICS memberd expect the current trend in commercial farmland values to continue.