Wells farmers under threat of being priced out of the market?

Profile image for WellieWonka

By WellieWonka | Friday, June 29, 2012, 14:29

A report today in the Western Daily Press suggested that West Country farmland is a better investment than a Mayfair apartment.

Leading economists have announced that the value of farmland is set to increase by 37% by 2016. This level of return far outstrips that of gold, oil or property in London's more desirable areas.

While this is exciting news for landowners around Wells, the concern expressed by West Country farmers is that young farmers will not be able to get into the industry.

The projected value increase is being driven by growth in the global demand for food as well as being a covert means to shield wealth and avoid tax. Savills director Alex Lawson said: "Diets in developing countries increasingly include items common in the West such as bread and potatoes, which will further boost the value of British farmland where such crops are grown." 

Ian Johnson, South West spokesman for the National Farmers' Union, said the issue was serious for younger farmers. It is good news for established farmers with land who have tangible assets they will hopefully be able to borrow against to invest in their business.

"But the problem is that when the price of land goes up like this, the amount needed to borrow to buy it is far more than one would ever make from farming it in the same year. So effectively, the only people who can buy land are the ones doing so as an investment, with no interest in farming it themselves.

 "To maintain the level of food production in this country, we're going to need another 60,000 people to come into farming in the next ten years, and if the price of land is soaring they are going to find that difficult."

The value of the land will only continue to increase we must assume if it is turned over to crops and thus fulfils the market driving the process. So, as long as young farmers entering the industry are prepared to work rented land from the investors the problem may not be insurmountable.

Some Wells farmers may argue that this may make it easier not harder for new generations to carry on the farming tradition. 



max 4000 characters

Latest Stories in Wells


Local Vouchers

  • The Sensible Eating Plan - Ebook

    Functional Fitness Forever

    Get the nutritional information and eating plan previously given to clients only! Available from pay hip or through the functional fitness forever website, this eating plan can help you feel better!

    Terms: available from http://payhip.com/b/rH9v
    Tweet and FB your purchase for discounts!

    Contact: 01749 608718

    Valid until: Tuesday, September 30 2014

  • £20 Off ghds - Great Summer Exchange!

    Frontlinestyle Hair & Beauty

    Upgrade with our Great Summer Exchange! Trade-in your old electrical hair equipment by any brand, e.g. styler/curling tongs/hairdryer and swap for any new pair of ghds to get £20 off this summer!

    Terms: Offer ends 31st August 2014.

    Contact: 01749600464

    Valid until: Monday, September 01 2014

  • Free child entry to our award winning animal farm!

    Court Farm Country Park


    Terms: For a limited time only, get 1 free child entry to our award winning farm with every two paying adults - have a family day out and save £5.95!
    Subject to availability
    Not to be used in conjunction with any other offer

    Contact: 01934 316835

    Valid until: Sunday, August 31 2014


Local Jobs


Search for...

Min price is bigger than Max price
Min price is bigger than Max price
Min rent is bigger than Max rent