The 2012 land market saw some superb sales of land reinforced by the lack of supply to meet the demand from both farmers and investors.

The prospects for land values in 2013 are likely to be influenced by the lack of profitability in all sectors and higher input costs.

It was last month when many farmers had to pay tax based on the excellent arable harvest of 2011 when yields were heavy, prices unbelievably strong and therefore good profit margins. Unfortunately the 2012 harvest yields were down significantly plus a very difficult autumn for the livestock sector with horrible maize harvesting conditions and similar conditions for drilling cereals.

2013 is likely to see another year with a shortage of supply of commercial sized livestock and arable farms. This will keep land values strong, and dependant on the soil type, values will remain in the healthy range of £8000, - £10,000 per acre. Sales agreed at the close of 2012 by Woolley & Wallis have saw figures in excess of £11,000 per acre for smaller blocks ranging between 50 to 100 acres.

A distinct pattern of land sales could quickly emerge this spring with farmers looking to reduce their capital loan exposure by selling off lying parcels of land of between 50-150 acres. These are likely to be quickly snapped up by active and go-ahead farmers. Sales of land of this size can create an active “off” market with neighbours keen to always acquire the adjacent fields. The old adage of “land next door is always worth an extra £500” may have to be increased to take account of farmer demand.

Investor, wealthy lifestyle and roll-over farmers will still be actively chasing the larger farms in 2013 but as land values stay strong for the foreseeable future, it is increasingly hard to persuade vendors to sell. It is unlikely that values will continue on their upward trend and a plateau seems to have been reached with vendors, buyers and importantly banks happy to continue to trade land at £10,000 per acre