The Bank of Scotland announced the launch of its new Agricultural Land Price Index last week (June 9).
The index will track regional price movements of farmland based on the type of farm, the method of land use and the value of the land itself.
The latest research from the Bank of Scotland suggests that over the last decade, prices of agricultural farmland in Britain have risen by around 58 per cent, from an average of £2,290 per acre in 1995 to £3,630 in 2005.
This shows a similar increase to house prices in that it is more than double the increase in retail price inflation over the same period.
"The rise in agricultural land prices over the past ten years demonstrates the healthy demand for farming land from both inside and outside the agricultural sector," said John Taylor, director of agriculture at Bank of Scotland Corporate.
"One particular trend is the amount of 'lifestyle' money flowing into the rural economy," he continued. "In addition, the expansion by profitable farms by rolling over funds to increase land holding on their own farms is driving up prices."To read more about property, click here.
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