Thursday, July 30, 2015

"British land prices ease as farmer buyers step back"

Farmland is "worth" some multiple of the cash flow it can generate. What someone will pay for it is another story.
From Agrimoney:
UK farm prices have eased for the first time since the global financial crisis, led by a retreat in the market for prime arable land, as weaker agricultural commodity prices have prompted farmer buyers to step back.

Farmland prices in Great Britain, comprising the vast majority of the UK, eased by some 0.3% in the April-to-June quarter from the record highs set in the first quarter of 2015, data from Savills show.
The decline, the first in more than six years, was led by the market which has proved consistently most buoyant - prime arable land, and in East Anglia, the core UK wheat belt, and a region which has shown particular growth to become, for the past five years, the most expensive.
Prices of top-quality cropping land in the East of England fell by 4.8% in the first half of 2015 overall, with values in the neighbouring East Midlands dropping by 3.9%, although values further west and north did maintain growth....MORE
Jan. 2015  
U.S. Farmland Has Been the Top Performing Asset Over the Last 20 Years: Goodbye to all that
Oct. 2013 
Real Estate: It's Not Just London, Big Money Lining Up to Buy British Farmland
June 4, 2012 
Factoid: Price of English Farmland Has Risen 10,745% During the Reign of Elizabeth II Regina
June 2012  
"French Farmland Offers Better Value than UK Land"
We've been posting on British Farmland for years but, outside of the odd Chateau listing and the effects of climate on wine growing I think this is the first French farmland post.
Two things to be very, very wary of: The Common Agricultural Policy and the French tax code.
March 2012
Absolute Return Partners on Investing in Farmland
 Gerald Grosvenor might beg to differ with the answer to the question in the first sentence below.
Although his 300 acres got hit hard in the downturn it has come back strongly.

Half the Mayfair District, most of Belgravia, and Grosvenor Square where the U.S. Embassy is one of his many lessees make a nice hedge for the 4500 acre farm.

Throw  in the 17 acres in Silicon Valley and the 1200 acre Annacis Island off of Vancouver, B.C. and you've got a bit of diversification....
Oct. 14, 2009 
Green Acres is the Place to Be: "The UK farmland grab"

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