Changes to farmland pricing and what they mean for rural businesses
By Andrew Heskin, Consultant and ARA specialist
The farmland market in England and Wales has entered 2026 in much the same mood as it left 2025 — cautious, subdued and characterised by limited supply and selective demand. For rural businesses considering whether to buy, sell or hold land, understanding the current dynamics is increasingly important.
A market treading water
According to the Knight Frank Farmland Index, the average price of bare agricultural land across England and Wales fell by around 5per cent during 2025. This the first-time values had dropped by that margin since 2017.
By early 2026, the picture hadn’t changed much, with the acreage of publicly marketed farmland falling by more than half compared with the same period in 2025.
Strutt and Parker data confirms a similar picture, with around 7,000 acres publicly marketed in early 2026 (some 15 per cent below the five-year average).
A combination of wet weather, Inheritance Tax uncertainty, the closure of the Sustainable Farming Incentive and pressure on arable incomes has prompted many potential vendors to delay bringing property to market.
Average arable land values fell approximately eight per cent in the first half of 2025, to around £10,500 per acre.
Despite this correction from the record highs of 2023 and 2024, values remain historically strong, with close to 60 per cent of arable land still selling above £10,000 per acre.
Buyer demand
Despite the cautious mood, demand has not evaporated. Well-funded buyers remain active, but they have become increasingly discerning.
Location, soil quality and the quality of buildings and infrastructure are now playing a more decisive role in determining whether sales generate strong competition or sit unsold.
Arable land in more productive areas continues to attract interest from neighbouring farmers looking to improve economies of scale.
By contrast, farms in more remote locations or with a large residential element are finding buyers harder to come by.
Pasture and grassland values have been somewhat more resilient, with some upward pressure continuing in parts of the north.
What this means for rural businesses
For those looking to sell, the message from agents is that realistic pricing and good presentation remain essential.
Overpriced property is taking longer to sell and the expectation of a competitive bidding process cannot be taken for granted in the current climate.
For potential buyers, the subdued conditions may represent an opportunity, particularly where a neighbouring plot rarely comes to market.
The Inheritance Tax changes have also introduced an additional layer of complexity for those buying or selling farmland as part of a broader estate plan.
Land values, relief thresholds and the structure of ownership all now interact in ways that were not relevant before the reform.
Taking advice before any significant transaction is becoming more important, not less.
If you would like to discuss how this may affect your farming business, the Moore Thompson ARA team would be happy to help. Please contact us at 01775 711333.