Savills says British farmers dominated demand for British farmland in 2011. Conversely, a relatively high proportion of sellers were investors, including funds and corporations. Danes were net sellers taking profits to re-invest in Danish farmland.
Farmers think for the long term, seriously long term - we are talking generations and in some cases centuries. Few investors think like that. They are more concerned with market cycles which last only for a few years at a time. British farmland prices hit record highs in summer of 2011, before edging down slightly at the end of the year. Could it be that these investor sellers expect prices to slide further?
The Royal Institution of Chartered Surveyors, Knight Frank and other respected organisations expect land prices to rise in the medium term, because food prices will continue to rise. But, recession is coming to many countries, from Taiwan to Greece and most probably Britain - this could have a deflating affect on food prices, and therefore, land prices, at least in the short term.
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