According to Savills the average value of farmland continued to rise in the third quarter of 2013 as a result of a combination of a shortage of farmland on the market, investors with cash looking to invest at a time when tax regulation favor investment in farmland, and the expansion of successful farm businesses. By the end of the third quarter of 2013 values of prime arable land have risen 8.5% with the company predicting an overall increase for all farmland for the year of 8.8%. For good quality commercial land or the best dairies growth could near 15%. Supply of available land continues to be historically low. In 2013 approximately 128,300 acres of land have been publically marketed – a 5% increase over 2012. In 2013 there are also 13% more applicants with £5 million – £10 million to spend on farmland than in the past three years.
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