

English Farmland is still an excellent alternative investment, according to recent research from Knight Frank, the global real estate consultancy.
The report highlights the advantages of investing into English farmland, ranging from long-term positive capital growth to its relatively low exposure to volatility in the markets, when compared to other assets such as gold.
In addition, it shows the price of English farmland has risen steadily over the past 50 years, with this trend set to continue. “In 2013, the average value of English farmland hit a record high of £6,882/acre, according to the Knight Frank Farmland Index, taking 10-year capital growth to an impressive 210%,” explains the report.
Source: Knight Frank Residential Research
It also analyses the often discussed macro trends: growing global population, rising demand for food and increased demand for meat and dairy products.
The UK is not the most frequently touted location in agri investment circles, as much of the recent investment activity is in places where there is potential to develop industrial-scale agribusiness. However, the report identifies opportunities for growth in the UK’s agricultural market.
“Farming in the UK is becoming increasingly polarised between businesses that are looking to develop by growing larger and those that are remaining small, but focusing on the production of higher-value products,” the report says.
Read Cultivating the Best Returns: Investing in UK Farmland 2014