As 2025 draws to a close, it has been a challenging year for all those involved in agriculture and the market has certainly reflected this. Some farming businesses have decided to exit the market, leading to sales, while active buyers may well reap the rewards of their purchases this year when the market stabilises and prices begin to rise in the future.
The year started weakly, with continued economic uncertainty and poor weather dampening confidence in the farmland market. However, spring brought a notable shift when several large farms and estates were launched in southern England, either publicly or privately, giving buyers more choice for the first time in a while. This renewed activity was short-lived, as sentiment weakened again during the autumn. By the end of October, supply was down by 15% compared to the same period in 2024.
Sales were largely focused on bare land, often non-core blocks sold to reduce borrowings or fund diversification, although some best-in-class farming and amenity estates traded well. Prices remain a key talking point across the region and country. While the dramatic spikes above £14,000 per acre have not returned, most arable land in the South consistently traded between £11,000 and £12,000 per acre. The estates market faced additional challenges from a subdued country house sector and high building costs, which deterred some buyers.
Buyer numbers were down this year but included those looking to expand holdings, rolling over buyers, acquisitive institutions, and a few BNG-driven purchasers in specific geographies. Looking ahead greater economic certainty for the sector would help restore confidence after a poor harvest, weak commodity prices, and high borrowing costs. The industry is ready for some positive news.