Farmland hit by price boom

FARMLAND prices in the North East have reached a record high, a land survey has found.

The latest RICS Rural Land Market Survey has shown that prices were at an all-time high during the first half of 2011 as land availability failed to match growing demand.

The average price per acre increased to £5,563 and interest from potential buyers of commercial farmland continued to rise.

Surveyors say it is largely due to increasing demand from commercial farmers who want to expand production on the back of elevated commodity prices.

RICS North East Rural Spokesman David Coulson said: “The market has been fairly buoyant in the North East, with more demand than supply.

“Well-equipped farms are in good demand with a few farmers seeking farms for their family to run.”