2023-01-10-莱坊-English_Farmland_Index_Q4_2022_2页_807kb

Knight Frank Farmland Index Summary for Q4 2022

Key Highlights

• Farmland values in England and Wales surged to record highs in 2022, with a 13% increase over the year to £8,550 per acre, outperforming inflation and other asset classes like gold, equities, and residential property.
• The growth was driven by limited supply (fewer than 80,000 acres publicly advertised) and strong demand from buyers interested in natural capital, carbon credits, biodiversity, and geo-political factors such as food security and climate change.
• Natural capital and nature-based solutions are key trends boosting land value, particularly for lower-quality land, as focus shifts to sustainability.

Market Dynamics

• Supply remains low, with more transactions occurring privately (60% of Knight Frank's sales in 2022).
• Headwinds include potential cuts to the Basic Payment Scheme (BPS) and rising input costs, but commodity prices provide some margin support for farmers.
• The market is expected to stay firm in 2023 due to underlying momentum, despite uncertainties.

Comparative Insights

• Farmland values consistently exceed long-term averages, highlighting resilience against broader economic challenges.