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News: Boom time for Scottish farmland

Mon, 05 Nov 07

New research from Bank of Scotland shows that agricultural land prices in Scotland have risen by 47%, in the past three years from an average of £1,863 per acre in 2003 to £2,737 in 2006...

The 47% increase in agricultural land prices was almost seven times greater than retail price inflation (7%) over the same period but slightly less than the 53% rise in Scottish house prices over 2003-2006.

Scotland has the least expensive agricultural land in Great Britain with an average price of £2,737 per acre, closely followed by the North East (£2,772 per acre). The South East has the most expensive agricultural land prices with an average price of £5,705 per acre.

The average value of a farm in Scotland – in terms of agricultural land only – is £740,032, 7% higher than the average farm value in 2005 (£692,874). Regionally, Scotland has the second highest average farm value in Great Britain, behind the South East (£778,860). High Scottish farm values reflect that the average Scottish farm size (270 acres) is much larger than the British average (160 acres).

On average, the most expensive agricultural land in Scotland is arable farming land at £3,616 per acre; 6% higher than the average for the next most expensive category, dairy farming land (£3,425 per acre). At £165 per acre, hill farming land* is 94% cheaper than the average price for all farmland in Scotland.

Scotland had the highest number of farms in Great Britain in 2006 at 51,361, an increase of 2% from 2005 (50,189). On a regional basis, Scotland accounts for 18% of all the farms in Great Britain, followed by the South West (51,094). The North East, at just 2% of the total, has the lowest number of farms. * Hill farms comprise of farms where the majority of holdings are over 1500ft above sea level.

 

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