The value of farmland in Kent rose by nearly three per cent during 2012 and currently stands at £6,214 per acre. Considered over a longer period, prices in the county have risen by an incredible 11,500 per cent since the 1950s and further increases are expected this year.
Farming remains a hugely important industry in the South East where around seven tenths of the land is farmed. In Kent alone there are around 2,200 farms employing 13,000 people. Against this background demand is outstripping supply and driving prices ever higher as investors outbid each other for good quality land.
Andrew Shirley conducts research into rural property for Knight Frank and he has confidence in the future of the market despite the poor summer weather which led to prices remaining static in the latter part of the year.
“A fall in the supply of good farms for sale, coupled with an increase in demand from private investors, helped to keep prices stable and we expect values to increase by around five per cent (during 2013).
“More land may come to the market as some more highly-geared producers with one bad harvest in the barn and another in the ground decide to call it a day. However there is unlikely to be the kind of glut that could pull back prices,” he said.
He goes on to explain that an increase in availability and choice could help the market as good arable land is always in high demand.
At the same time plans have been announced to launch a body representing the entire rural economy in Kent.
Kent Rural plc will seek to encourage investment in rural businesses ranging from storage to water management and packaging.
High Sheriff of Kent Michael Bax is involved in the project and gives an indication of the importance of farming to the county.
“The annual turnover of the county’s agricultural and horticultural business is around £500 million.
“If Kent Rural plc was a real plc it would be ranked at around 60th in the FTSE 100 Index which is quite impressive,” he said.
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