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Despite economic uncertainties and political headwinds, agricultural land in England and Wales remains in high demand. The consulting firm Carter Jonas reports rising prices once again.
In the first quarter of 2025, prices for agricultural land in England and Wales continued to rise. According to the British real estate consulting and brokerage firm Carter Jonas, an acre of farmland averaged £9,811 (approximately €11,479), and an acre of pastureland £7,959 (around €9,312). This represents an increase of 0.9% and 0.8% compared to the previous quarter.
Converted to hectares, this averages out to €24,243 for farmland and €19,677 for pastureland. This upward trend has persisted despite the economic and political headwinds facing the agricultural industry.
Significant price increases were achieved for agricultural land of good quality. In the first quarter, these arable soils cost an average of 2.0% more than a year earlier, while very good pastureland increased by 3.2%. In the West Midlands, good farmland was paid an average of around €34,600/ha.
A longer-term view also shows a significant trend: since 2020, arable land has increased by 16.4%, and pastureland by 18.2%. While farmland is still 3.5% below the peak of 2016, pastureland has already surpassed this peak by 4.5%.
Despite the ongoing structural changes in the industry, there continues to be significant interest in agricultural land according to the real estate company. Buyers include affluent agricultural businesses and those interested in environmental protection and improving quality of life.
A key driver of prices remains the limited supply. In the first quarter of 2025, only 8,502 acres (3,401 ha) were newly brought to the market, a decrease of 23.7% compared to the previous year. However, this supply is still above the five and ten-year averages. Carter Jonas attributes this decline to farmers reevaluating their assets in light of political announcements.
The real estate firm expects a usual seasonal increase in offers in the coming months in the land market.
