The farmland market in North Yorkshire has certainly been very buoyant since the first “lockdown” ended. Robin Jessop Ltd have successfully marketed and sold three good commercial farms and a significant block of pasture land. Covid 19 has not deterred buyers as the demand remains firm.
The demand for good parcels of land and commercial farms has remained partly due to low interest rates and the fact that farmland is still seen as a safe haven. There is growing demand from forestry investors who are wanting to invest in marginal land with the ever-growing media coverage around “carbon capture” and “carbon neutral”. This has driven up values significantly.
Village Farm, Ellerbeck, Northallerton was the first of three farms to be launched by Robin Jessop Ltd. There was plenty of interest from buyers with significant re-investment from the sale of development land, local interest and buyers from out of the area.
Rennie Farm, East Harlsey, Northallerton was the second farm that we launched in early summer. Local demand was strongly fuelled by established farming families wanting to expand. With over 50 viewings taking place and over 20 offers received never has the demand for a farm been so competitive.
The third and final farm to be launched was Brogden Farm, Danby Wiske, Northallerton. Again, there was good demand locally and stiff competition from throughout the North East. The sale of Brodgen Farm was finally concluded by a private telephone auction. The successful purchaser was relocating from Cumbria.
September saw the launch of 550 acres of rough grazing situated West of Hawes. This block of bare land attracted potential purchasers from all over the United Kingdom. The diverse range of buyers comprised hedge fund managers, forestry companies, UK Charities, PLC’s, breweries and large arable farmers. The driving force behind this demand was companies and businesses wanting land to offset their carbon footprints. Again with 15 offers received for the land, this certainly demonstrates the carbon capture and carbon sequestration is at the forefront of people’s minds.
Previous years have not seen this much activity in the farmland market. There has been very little land marketed publicly over the past couple of years. However, the demand has outstripped supply. There have been significant variations in prices paid but generally the farmland market has proved resilient during a very turbulent period in the UK economy. Even with the uncertainties over Brexit and changes to the Common Agricultural Policy and the poor harvest of 2020, which has reduced farm incomes, these factors have not deterred potential purchasers.
In view of the changes to the Common Agricultural Policy and the lack of clarity surrounding future support for farmers there is a chance that more land may come to the market in 2021. However, the variation in the prices paid will continue and will largely depend on size, location and nature of the holding.
If you are considering selling then please contact in confidence for a free market appraisal either Andrew Dickins MRICS FAAV or Robin Jessop FRICS FAAV