Increase in Land Price Shows Confidence in British Farming

By Steve Dube

Milk producers attending the 2007 Semex Dairy Conference next week will receive a much-needed new year vote of confidence when keynote speaker Charles Dudgeon, of leading international property consultancy Savills, takes to the floor.

Mr Dudgeon points to renewed buoyancy in the UK agricultural property market, with land prices on the rise.

And most properties are bought as going concerns by ‘coalface producers’, including dairy farmers.

Mr Dudgeon says the market shows that there are reasons to be more optimistic – despite the current gloom in the industry.

‘Property trends, such as the volume of land moving, the purpose it is bought for and the value it is realising, are key indicators of the strength of the agri-industry and currently the signs are of an agricultural industry enjoying renewed optimism, confidence and anticipated profitability,’ he said, speaking ahead of the three- day Semex conference, which starts on Sunday.

‘We are seeing real growth in demand for land parcels and working farms including dairy farms and, significantly, this is from practising producers wanting to grow their existing businesses and secure land for succession.’

Mr Dudgeon says international buyers, particularly Danish and Irish producers, are helping to boost the market.

‘Ultimately, the fact that UK land is now being strongly competed for by existing farmers against the strategic investor and returning much better prices is evidence of a palpable new confidence in British farming, with experienced producers optimistic that there are returns to be made now and in the future,’ he said.

In addition to signalling greater optimism within the industry, Mr Dudgeon will also be advising farmers on how to maximise non- farming development opportunities on their land.

Peter Arthur, marketing manager of Semex UK, said this year’s conference would focus on ‘keeping it real and relevant’.

He said, ‘Our delegates want sound business advice and the opportunity to get answers to tough questions.

‘The reality is that, as support is further withdrawn from farmers through EC policies, there is a need to look closer to home for solutions.

‘Better real estate management by, for example, capitalising on unused or unmanaged parcels of land and buildings, has the potential to release hundreds of thousands of pounds of capital to augment low product price returns.

‘This is an area that we know farmers will be keen to learn more about and in Charles Dudgeon from Savills we have undoubtedly one of the industry’s best experts on hand to outline the realities and opportunities.’

The Semex Dairy Conference, now in its 17th year, takes place from January 14 to 16 in the Hilton Grosvenor Hotel, Glasgow.

(c) 2007 Western Mail. Provided by ProQuest Information and Learning. All rights Reserved.