In the background to the hype surrounding the residential market through the middle of 2020, farmland supply to the market has been at record low – perhaps 80% down on previous years. Conversely demand from famers and non-farmers is high and the evidence from the second quarter is that farmland is holding its ground in terms of value. Our informal opinion is that quarter 3 will show a significant increase reflecting the surge in post lockdown activity. Beyond that, the ongoing effect of the pandemic combined with a possible no deal BREXIT will lead to yet more “interesting times”.
Farm production itself has had a topsy turvy year heavily influenced by extreme weather. Among the headlines was a record lamb crop but the wheat harvest has been a disaster. Many farmers are struggling to get the harvest in with severely depressed yields likely to be compensated for, to some extent, by higher prices.