Farmland capital growth outperforms central London

    Farmland has seen greater capital growth than that seen in prime central London property over the last 10 years, figures from Knight Frank have revealed.     The agent’s Farmland Index recorded a 164% increase in English farmland values from £1944 to £5,123 an acre, compared with 113% growth in central London and a 22% fall in the FTSE 100 share index over the same period.     The agent said that a decade of further growth that could see values in excess of £10,000 an acre was “certainly not inconceivable” but warned the sector was not exempt from threats, with political uncertainty and the end of the current round of agricultural subsidies in 2012 both issues that may have an impact.     Land ownership could also become less enticing if there are changes to Agricultural Property Relief legislation, which in many circumstances provides 100% relief from inheritance tax on farmland that is integral to the farming business.   patrick.clift@estatesgazette.com