The recent escalation in prices of foodstuff currently enthralling all parts of the world is a sure enough incentive for people to go back and till the land. Profits from farm produce are rising as basic food commodities have reached an all-time high. This has led to an unprecedented rise in the price of commercial farmlands.
The consequent rise in the price of farmland reminds me of my Basic Economics teacher; she would, at least once in a day mention this quote: ‘for a balance in the world, supply and demand must marry.’ True to that statement, there seem to be some magical forces that are pushing the price of arable land to never-before-seen-heights.
Just a few days ago, I stumbled into a report published by the Royal Institute of Chartered Surveyors (RICS) and was truly astonished to find out that commercial land for farming is more expensive to acquire compared to its residential counterpart. Truly, the economic theories of this world are being re-written.
Come to think of it, farmland was most expensive in the North West at a whooping £17,300 per hectare, while the cheapest land was in Scotland, priced at £9,100 during the last six months of 2010; that’s a whole 6% rise covering England, Scotland, and Wales.
Some other factors attributed to this include but not limited to: the strong gains in farmland prices as commodity prices continued to move upwards, commercial farmers’ increasing interest to purchase prime farmland to expand their businesses, and a strong demand keeping the market very active.
Sue Steer, spokesperson of RICS further compounded my fears, hear her: ‘These, combined with lack of supply of good quality land can only lead to even higher prices over the next 12 months. In comparison, the residential farmland market remains relatively subdued, reflecting the broader national housing picture,’
Perhaps it’s time I go into farming, what do you think folks?
