Financial Times FT.com

Strong demand for farmland squeezes out lifestyle investors

By Elaine Moore

Published: August 2 2008 03:00 | Last updated: August 2 2008 03:00

High demand for farmland has pushed lifestyle farmers out of the market, but agents said yesterday that demand from prospective investors looking for a tax-efficient slice of the good life was as strong as ever.

Over the past two years the value of farmland has risen by more than 100 per cent on average, driven by the soaring cost of food. Over the past six months prices have accelerated at their fastest pace on record - 24 per cent - according to figures this week from the Royal Institution of Chartered Surveyors. The average price per hectare stands at nearly £13,000, according to the data.

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