Price Increases Not SurprisingApril 19, 2014 5:52am
Rising agricultural land prices reflect the strength of the farm economy, but the president of the Kent Federation of Agriculture is surprised by how fast prices are climbing.
The increase last year was 15.9% and the previous year it was just over 30%. Adrian Jaques believes it’s a function of farmers becoming more efficient.
“We have great farmland and the equipment that farmers are using is getting more modern and they can do more with it,” he says. “They are trying to get more land to make more use of their equipment.”
Jaques admits there is a risk of rapidly rising interest rates forcing land prices to drop, but he believes most buyers would be taking that into account and not getting in over their heads.