farm land prices

The above headline is as maybe – but what about those on normal incomes who want a stake in farming….. The article tells us:

Rural property continued to generate impressive returns for investors in 2013, according to the results of the IPD Rural Property Index for the year ending 31 December 2013.

Over the year to end 2013 rural property returned 12.3%. This sector has performed well throughout the recession, producing a 10.9% total return during the last five years, and reinforcing its reputation as a valuable sector to have in a portfolio.

Most of the return is generated by rising values (10.7%). Although the income, which is mainly in the form of rents paid by farmers to use the land, is small (1.4% of capital value), the rents are rising due to it being a profitable period for farming.

There has been a considerable increase in activity in the investment market this year with purchasers chasing quality holdings.

Mark Weedon, Vice President, IPD, commented: “These index results show how well rural holdings have performed compared with other asset classes. This type of investment offers great diversification options against more mainstream assets.”