Agricultural land in parts of the north west is becoming increasingly difficult to value as interest from non-farming purchasers continues to fire demand.
The situation is being exacerbated by the short supply of land coming onto the market and the essential need for some farmers to pay high prices in order to expand their businesses when adjoining land becomes available.
It's creating a unique situation for land valuers working within the L and K Group whose Lancashire and south Cumbria-based operation includes Lancaster Estates and Properties and M B Hodgson and Son at Kendal.
At recent sales the two branches have achieved high values for two properties – including one which included a block of 7.3 acres of land that was purchased by a neighbouring farmer for £54,000 - and another where 11.5 acres averaged £8815 an acre.
Stephen Watson of Lancaster Estate and Properties recently sold Bell Farm Caton Green, Brookhouse, Lancaster which included the 7.3 acres at £54,000.
The entire property, including a Grade II listed house in need of improvement, a detached music room, housekeeper's cottage, detached barn and garaging, realised a total of £849,000.
"The market is very bullish with no shortage of non-farming money available to buy bare land and we have plenty of clients looking for properties with land," said Stephen Watson.
Despite the difficulties being faced by the farming sector, particularly milk producers, the mass exodus from farming that has been widely predicted, isn't happening.
"That's not to say we won't see more farms and land coming on to the market over the next two or three years but for the decision to sell a family farming business is not one that can be taken lightly," added Stephen Watson.
M B Hodgson and Son have recently sold Manor House Farm, Overton, near Morecambe through its estate department. The Grade II dwelling had two barns (with planning permission for development) and 237 acres of fertile meadow land.
Although the house did not reach its reserve and is now for sale privately, the barns for development realised £450,000 while the overall average for the land in total was £5050 an acre.
Michael Mashiter of M B Hodgson commented: "There was keen equestrian interest for some of the land which clearly increased its value and there was a 60:40 split between land selling to equestrian buyers and that taken by farmers.
"There's a shortage of agricultural land on the market; what is available is clearly finding no shortage of buyers at high values."
