Given the healthy levels of interest witnessed in the commercial farmland market last year, the sector looks set to remain robust throughout 2017, according to CKD Galbraith.
The Scottish rural consultancy said that Scotland’s commercial farmland market remained resilient and that values are holding strong, despite relatively poor commodity prices experienced over the last two years and the political uncertainty placed on the industry throughout 2016 with Brexit, Land Reform and the confusion over CAP reforms and late BPS subsidy payments.
Over the last 12 months, more than 60 farms totalling over 20,000 acres with a value in excess of £65m have been sold or are currently under offer through CKD Galbraith.
Of notable interest is the increasing number of private sales taking place throughout Scotland and the firm now has a growing number of clients on its books looking to buy.
Simon Brown, partner at CKD Galbraith, said: “Headline figures are still being achieved for land in parts of East Lothian, Angus and Fife with the Aberdeenshire market slowing down as a result of the fall in oil prices.
“Until fairly recently, some of the more marginal arable and grassland farms in Ayrshire have been depressed by a drop in milk prices. However, in recent months we have experienced an increased interest in land and farms for dairy following an increase in milk prices during the latter half of 2016.”
Planting land still attracts buyers from south of the border and other European countries who continue to identify value for money, according to Duncan Barrie, partner at CKD Galbraith.
He commented: “Productive bare arable land and hill ground suitable for planting remains in high demand and often attracting a premium at closing date.”
“We predict healthy competition within the Scottish land market throughout 2017 due to the associated tax relief, historically low interest rates and farmers keen to expand their existing operations,” he added.