The price of farmland has started to fall and is likely to continue to do so over the next few years, according to Savills.
Farmland has outperformed many other assets over recent years, but last year saw the first fall in the price of prime arable land in 13 years. The fall was partly due to lower commodity prices, but also to concern about the impact on farming subsidies should the UK decide to leave the European Union.
Savills estimates that prices for farmland fell around 1.7% last year, a sharp turnaround from the prior year’s 12% rise. It is forecasting a 4.5% fall this year, followed by falls of 3.8% and 1.7% in 2017 and 2018, respectively.
