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Head of Farm Agency, George Alder MRICS FAAV, comments on the South West farms and land market and the outlook for 2024.
In 2023, Stags has seen a 23% increase in the number of farm instructions and a marginal increase in land instructions in comparison to 2022 with farmland values maintaining levels observed in 2022 owing to good demand from farmer, investment and non-farmer buyers. Reductions in BPS payments, higher borrowing cost, high input costs and changes to agricultural policy have had little impact on farm and land values to date.
The market for larger commercial farms remains strong with demand from both farmer buyers looking to expand their business and buyers with rollover funds looking to invest into agricultural property whilst residential farm buyers have been more selective in their search for rural property and have factored in higher interest rates and building costs.
The market for land remains strong with demand from farmers keen to invest in land to expand their holdings, we have also seen greater demand from community tree planting schemes and independent undertakings to improve the countryside for environmental reasons.
For 2024, we expect the farmland market to remain resilient against flat economic growth, interest rates fluctuations, flat commodity prices and climate change pressures suggesting more will look to farmland as a safe long-term investment, as they have in the past.
For more information on the market, and how Stags may be able to assist you, contact the Stags farm agency team to speak with one of our local experts.