Farmland sales in the East of England rose by 9pc during the first half of this year - with subsidy withdrawals highlighted by agents as a key factor. 

According to the quarterly farmland survey from rural agency Savills, more than 14,000 acres of farmland were publicly marketed in the region since the start of the year – up 9pc compared with the same period in 2023.

It comes against the backdrop of dwindling subsidy payments as the EU-era Basic Payment Scheme (BPS) is being phased out in favour of a new post-Brexit system of environmental incentives.

Harry Kennedy, associate in the rural agency team at Savills in Norfolk, said: “Our last survey forecast the supply of farmland would continue its upward trajectory and so far this has played out – predominantly driven by larger blocks over 500 acres becoming available as farmers and landowners manage the transition away from the Basic Payment Scheme.

“The continued reduction in funding is encouraging many farmers and landowners to diversify and find alternative sources of income, however others are making the difficult decision to leave the industry completely or to consolidate and sell part of their holding.”

Reed Lane Farm near Mileham is one of the East of England farms which hit the market in the first half of 2024Reed Lane Farm near Mileham is one of the East of England farms which hit the market in the first half of 2024 (Image: Savills)

Properties hitting the market in 2024 include three Norfolk farms, spanning 965 acres between Mileham and Gressenhall near Dereham, being sold with a total value of almost £10.7m in what agents believe could be the county's biggest farm sale of the year.

The Savills report also shows the average value of all farmland in the East of England dropped to £9,276 per acre at the end of June – a fall of 6.6pc, but still higher than the national average.

“Over the last 18 months or so the East of England has led the way in terms of farmland values – with prices hitting an almost historic high and significantly ahead when compared to the rest of the UK,” said Mr Kennedy.

“But more farmland on the market means more choice and – although values are still higher than they were two years ago and for the most part still outperforming the national picture – we have started to see a slight rebalancing."