Farmland prices are heading for an all time high despite the economic gloom spreading throught the UK and beyond.

Prices have increased a further two per cent since the end for June bringing the total price this year to ten per cent.

In just a six week period during the summer 17,200 acres of land were brought to market – compared with over 17,100 acres in the same period in 2010.

“So far this year we have seen equipped farm values outperform bare land, a trend which continues in our latest data. Since July 1, equipped values have increased 2% whilst bare land values have increased 1%, bringing growth over the year to 11% and 7% respectively,” Giles Wordsworth of Smiths Gore told South West Farmer.

Some farmers are said to have marketed their land because they think that land prices are reaching their peak following last year’s good harvest and subsequent prices. But there are also plenty of willing buyers about.

Land availability failed to match growing demand, according to the RICS Rural Land Market Survey.

Chartered surveyors throughout the south west estimated that the average price per acre increased to £6,115 during the first half of the year, reaching all time record levels for the second consecutive period.

Interest from potential buyers of commercial farmland continued to surge ahead, with 50 per cent more respondents reporting increases rather than decreases in demand.

Alongside rising demand, land availability increased for the first time in three years.

During the first six months of 2011, the South West experienced rising farmland prices along with many other areas.

Given the imbalance between supply to the market and demand, surveyors predict the recent trend in farmland prices to continue over the next twelve months, with strong growth expected in the commercial farmland market.