The newest Knight Frank farmland index report for 2014 indicates that the average value of UK farmland increased 15% over the past year and increased 187% over the past decade. The report goes on to state that UK farmland values increased 12% within 2014 to date bringing the average price per acre for UK farmland to £7,689. It is noted that these increases are being driven by tight supplies of high quality farmland and increased interest in the sector from investors. This increased interest is causing more deals being agreed upon off the market leading to private deals outnumbering public deals by as much as two to one. The Knight Frank findings have been supported by research conducted by Savills which reveals that the average price of high quality agricultural land in the South West region of the UK has reached £8,000 per acre.
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