Land price talks as crunch bites

Dec 2 2008 by Andrew Welsh, Perthshire Advertiser Tuesday

EXPERTS are set to meet in Perth to debate the credit crunch’s effects on land values.

Legal and taxation issues affecting farmers, owners and managers of rural land and diversification will also be up for discussion at the Huntingtower Hotel today.

The seminar is being jointly staged by Perth-based rural surveyors CKD Galbraith and solicitors Turcan Connell.

Galbraith’s rural practice head Wattie Barbour said farmland was “far from immune” to current economic problems, and that the trend for soaring rural property values was clearly in the past.

“This is a crucial time for those farming and managing rural land,” he said yesterday.

“Farmland continued to increase in value for the first half of the year, but there are indications this is levelling off and possibly even slipping back a little.

“Lack of supply is the main driver, as statistics indicate there has been no more land available this year compared to last.

“This is probably due to low interest rates and a banking sector that is not yet concerned despite a difficult harvest, lower commodity prices and higher input costs.”

Mr Barbour said prime Big County arable ground now averages an acreage price of around £5000, with arable at £4000 and silage at “£3000-plus”.

Permanent grazing has doubled in acreage value since 2006 to around £2000, while demand from the forestry sector has driven whitehill up to the £650 mark.

Despite the downward trend in recent months, Mr Barbour offered hope to those thinking about investing in farmland.

“I believe agricultural land will come back in value marginally, but not excessively, with a lack of supply sustaining it,” he said.

Tickets for the seminar, which takes place today at 7.15pm, are available from CKD Galbraith on 01738 451111, or Turcan Connell on 0131 2288111.