Tag Archives: calendar
Cost Of Farmland Rising Faster Than Housing: Arable Land Prices Up 10.7% In A Year Compared To 3.4% For Property
By Daily Mail Reporter PUBLISHED: 23:54, 29 October 2013 | UPDATED: 00:06, 30 October 2013 Read more: http://www.dailymail…l#ixzz2jgAZE1P9 The price of farmland is rising faster than property for the first time in nearly two decades. Experts say the cost of prime arable land rose by 10.7 per cent last year, compared to an average 3.4 per cent for house prices across the UK. Estate agents Savills said it rose to £7,594 an acre last year and could rise by 40 per cent to £11,000 by 2018. Countryside bliss: The price of farmland is rising faster than property for the first time in nearly two decade It is the first time in 16 years that farmland prices in Britain have risen quicker than even prime Central London property. Christopher Miles, director at Savills, said: ‘Farmland is seen as a tangible asset. ‘People invest in arable land for the same reason they invest in housing, it’s not a piece of paper or a derivative and people have confidence in it because it won’t disappear.’ Arable outperformed prime central London property during the 1973 oil crisis, the winter of 1980 – when interest rates hit 15pc – and the 1990 Gulf War. Easy street: Farmland prices are rising quicker than prime Central London property in areas such as Mayfair, pictured, and Knightsbridge In addition, low numbers of transactions are propping up the price per acre as farmers hold on to arable land as a long-term investment. Overseas buyers consider Britain to have some of the most liberal land ownership laws in the world, while landowners also enjoy business property relief and can pass down holdings to the next generation without incurring inheritance tax. But a resurgence in the UK agricultural industry to meet the demands of a growing global population is also increasing the appeal of farming as a business or an investment. Mr Miles said: ‘As commodity prices remain volatile, land remains an excellent store of wealth.’ Read more: http://www.dailymail…l#ixzz2jgAW1Lf1 Follow us: @MailOnline on Twitter | DailyMail on Facebook Continue reading
Is Farmland Caught In A Price Bubble That’s About To Burst?
Angela Bowman, Staff Writer | October 23, 2013 In 2013, the cost of an average acre of Iowa farm real estate jumped by 20 percent in value to $8,400. It’s a story that is seen across America’s fertile heartland with farmland worth about 13 percent more than in 2012. But is farmland caught in a price bubble that soon could burst? John Taylor, national farm and ranch executive for U.S. Trust, a private bank that is part of Bank of America Corp, believes it’s too early to justify fears of a bubble, according to a report by MarketWatch by The Wall Street Journal. “In general, if you ask, is farmland in a bubble, I’ll say, no,” he said. “But if you ask, are some people paying bubble prices, I’ll say, yes.” Farmland has be climbing for the last decade thanks to a surge in farm income and commodity prices, but as these prices settle back down and interest levels start to move higher, some see the next few years as an important test. “This is the moment of truth, I think,” said Brent Gloy, agricultural economics professor at Purdue University. He added that if prices continue to surge in the face of intensifying headwinds, it would then be a troubling sign that a bubble was building in farmland. Read more here. Earlier this summer, Esther George, President of the Kansas City Federal Reserve, argued against the threat of a farmland bubble. Instead, she is confidence in the lessons both farmers and bankers learned – and remember – from being “over-leveraged” in the 1970s. “The run-up in the land values is likely to still create issues for those that are exposed in some way,” she said. “Will we see it as broadly as we did in the ’70s? Not the same scenario. But we will still see some fallout if there is a strong correction.” Continue reading
Insight Adds To Farmland Flock
Insight adds to farmland flock Sarah Krouse 24 Oct 2013 Insight Investment has added a new farmland investment role to its team of experts in the sector, amid increased investor interest in farm assets. Insight adds to farmland flockThe asset manager has hired the former chief executive of farm investor NZ Farming Systems Uruguay to the newly created role of head of farmland management to help oversee its growing portfolio. David Beca will join later this year and be based out of London. Beca joins an eight-member team that works on farmland investments at Insight and will be responsible for overseeing the on-the-ground management of its farmland assets. The expansion of the investment team comes amid strong returns from rural land in the UK and globally. Beca has worked in a number of markets including Australia, Uruguay and South Africa for farmland investment, consulting and business analysis companies. Insight began its farmland strategy in 2011. The firm’s portfolio of investments includes a New Zealand dairy farm, a cattle station in northern Australia and arable farm assets in Romania. Other members of the team specialise in topics such as livestock and arable land and are based in a number of locations including Australia and Germany. Insight’s expansion of the team comes as it attempts to take advantage of increased investor interest in the asset class. The sector is touted as an attractive option for investors looking to diversify and boasts stronger returns than commercial property. Rural land in the UK, for example, has significantly outperformed commercial property in the country over the last five, 10 and 20 years, according to analytics firm Investment Property Databank. Rural land returned 8.9% compared with 0.7% for all property over five years; 13.2% compared with 6.3% property-wide over 10 years; and 13% compared with 8.9% for all property assets over 20 years. Beca will report to Martin Davies, head of farmland investments at Insight. Within the firm, the farmland investment team sits under specialist investments, a unit led by Reza Vishkai, who joined the firm in 2005. Beca said in a statement: “The development Continue reading
