Over the past year, U.K. cropland values have fallen by 9 percent, says Agrimoney, with one land company seeing a continued decline this summer while another says prices are stabilizing after the steepest decline in at least 12 years. Both companies “were sanguine about the effect of a British exit from the EU on land prices,” said Agrimoney, based in London.
The pound has fallen in value since the Brexit referendum, which would make farmland more attractive to investors, said the land companies. “We think it is likely that investors will have renewed interest in farmland, viewing it as a safe haven for wealth in uncertain economic times,” said Michael Feddes, head of estate and farm agency for Strutt and Parker. “It’s early days but we have already seen some signs of that happening.”
“Commentators have flagged the potential risk to farm incomes as the UK withdraws from the EU’s Common Agricultural Policy, which is a key source of subsidies,” said Agrimoney. The future of British crop exports also was uncertain since Europe is the top market.