Over the last couple of years you will have seen headlines in the press saying that farmland is a better investment than gold. Returns on land have been excellent, with prices rising by a further 12% last year, as outlined by the RICS Farmland Market Survey.
Questions are being asked about how long it can be sustained, as surely land can only be worth what it can make for the farmer? Well yes, in some remote areas, its agricultural value will be all it ever realises when sold. But in the urban fringes and in areas around settlements such as villages and hamlets, it is a very good investment that at the moment outstrips gold.
You may well ask if farmland values have reached their peak? Well, no, according to Carver Knowles, “In the last 12 months all the land we have sold has achieved well above guide price” says land sales expert, Mike Cluley.
“The lack of supply is the main driving factor. We have found that superior prices for the vendor can be achieved through using targeted marketing methods tailored to suit particular land parcels.”
“It can seem daunting for potential sellers coming to the market, as you have more than just a business and your livelihood to think about, but also moving your family and perhaps managing your tax position as regards capital gains or inheritance tax,” explains Mike. “Or you may be moving to a larger farm more suited to your expanding farming enterprise. We can help – from advising you on your agricultural business, to arranging finance and marketing your property.”
“We can also maximise your return, by perhaps adding planning consents to a range of buildings you have on farm, lotting areas up separately, or finding tenants or contractors if you wanted to sell only part of your farm to enable you to retire or plan succession.”