07:11 Monday 4th August 2014
BBC Radio Cambridgeshire
[P]AUL STAINTON: Let’s move to farmland and the cost of it in Cambridgeshire. Apparently it costs more than ever before. The price of an acre of English farmland has risen past £10,000 for the first time ever, according to research from a national property consultancy. So is this good news for farmers, or does it limit those who want to expand? And what does it mean for those who want to enter the farm industry? Is the rising cost of land pricing out the next generation of farmers? Well Jason Beedell is Head of Research at Smiths Gore, who are rural property advisers. They have offices in Peterborough and Newmarket and elsewhere. Jason, good morning. What’s happening then to the price of farmland in Cambridgeshire? Why is it rising so steeply?
JASON BEEDELL: It’s been rising steeply all across the country, and for quite a while now.
PAUL STAINTON: So it’s not just here?
JASON BEEDELL: No no. No. For the last ten years it’s been going up, so it’s really gone up 100% over the last ten years. And that’s purely because of the demand. It’s been a relatively profitable period for farming, and so those farmers who’ve got farms and land already want to expand their businesses, so they’ve been buying.
PAUL STAINTON: We keep being told it’s difficult for farmers out there.
JASON BEEDELL: It is for some, and for some sectors it’s terribly difficult. So if you’re a dairy farmer for example, and I know there are not too many Cambridgeshire dairy farmers, but if you’re a dairy farmer, only the top 25/30% are making a profit. But for arable farmers so much more important here, it has been a good decade.
PAUL STAINTON: Right. So it’s just farmers that are wanting to expand. Is that what’s causing the spike?
JASON BEEDELL: Well most land is bought by existing farmers, and like you say it’s very difficult, very expensive for new people to buy land. But it’s also bought by investors, people who want to put their money somewhere safe. And farm land is really seen as a safe investment. And it’s also bought by just normal people like you and me, who’ve got a little bit of money, and want their patch of England. So there are three types of buyers really.
PAUL STAINTON: It could be a good investment.
JASON BEEDELL: It’s a very good investment. hardly any investments have done better during the recession, over the past ten years.
PAUL STAINTON: Well I can’t think of anywhere where you’ve got 100% return on your money.
JASON BEEDELL: In ten years?
PAUL STAINTON: Yes.
JASON BEEDELL: No no. And there are some really good inheritance tax benefits as well, if you’re an individual. So there are lots of good things about it. And people seem to love farming, not just the people who do it at the moment, but a lot of people want to get into it.
PAUL STAINTON: And Bob Lawrence is with us as well, from the Cambridgeshire National Farmers Union. Bob, morning.
BOB LAWRENCE: Good morning to you.
PAUL STAINTON: So you’ve never had it so good.
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