FARMLAND MARKET

Whilst the economic turmoil of the recent months has disrupted markets globally, one asset class remains robust – farmland. The rising Bank of England base rate has increased the cost of borrowing. This, coupled with the cost of living crisis, means spending power is down, but demand for farmland assets remains strong.

Farmland has always been considered a safe investment, consistently demonstrating low but stable returns. However, it isn’t just the global economy which is keeping interest in farmland high; it is the impact of natural capital and ecosystem services. Investors see that farmland can offer more than food production, and the emerging markets for carbon credits, biodiversity units and water quality management, offer additional sources of capital and revenue growth.