Demand for farmland in our region remains high, with renewed confidence in the market and interest from non-food producing parties driving farmland prices up.
There was a significant lull in publicly marketed farmland during 2019 and 2020, and after a number of policy announcements supply was expected to rise in 2021, however, the shortage of supply means it could take some time to return to previous levels.
The average value of arable farmland in the East of England is currently around £8,500 per acre, and we predict this momentum will continue as natural capital markets and those leaning away from traditional farming, look to capitalise on subsidies and diversification.
The Government’s strategy for net zero is for the UK to be leaders in ending our contribution to climate change, whilst increasing job opportunities and prosperity. Over the past 30 years, the UK has reduced emissions by 44% and it is hoped the strategy will reduce vulnerability and our reliance on fluctuating international fuel markets. It is expected there will be a strengthening market for biofuels meaning an increase in commodities such as oils, grains and grasses.
Natural capital markets and biodiversity targets will result in more land being used for renewable energy, rewilding, and tree planting. We expect there to remain some disparity in supply and demand levels, that will maintain strong values for farmland.