West Country Agricultural Market Review 2025 - 2026

Despite fluctuations in the agricultural commodity markets, political changes, taxation reforms and support scheme uncertainty, there is still much cause for positivity as we move through 2026. 

So, where do we stand now? Richard Webber, Partner and head of Rural Agency, gives his thoughts on the wider market trends. 

Supply 

Toward the tail end of 2025 reports indicated that the supply of publicly marketed farmland was 15% down compared to 2024. 

It is expected that supply throughout the South West will remain limited through 2026, with listings of larger commercial holdings having declined, but private and off-market transactions are continuing to show strength.

Pricing

Pricing in the agricultural market currently reflects a period of cautious stability following last year’s volatility. 

Pastureland is now generally ranging from £5,000 to £9,000 per acre, while arable and prime parcels can command prices from £8,000 to over £13,000 per acre, with occasional sales above this level driven by local competition for high-quality or conveniently located blocks. 

Throughout the West Country, prime arable land prices declined by 4% in 2025, averaging about £10,800 per acre (Savills). However, pasture and grassland values have shown resilience, bolstered by agricultural commodity prices and various environmental initiatives. It is important to note that significant regional variations exist, even throughout the South West. 

Demand

The demand for quality agricultural land remains strong, primarily driven by rollover purchasers and commercially focused farmers, keen to secure and grow their farms for future generations. 

Additionally, there is emerging interest from environmental investors focusing on natural capital. Buyers in this sector include conservation organisations and institutional investors. 

Notably, there is strong demand for large, well-located arable and dairy holdings. In contrast, marginal holdings or isolated blocks of land might experience slower sales and moderate price adjustments if larger volumes of this type of land become available. 

Lifestyle purchasers are currently facing constraints due to their reliance on the residential and country house market, which has a ‘knock-on effect’ on the lifestyle farms market.

The inheritance tax regime, specifically the Agricultural Property Relief (APR) cap set at £2.5 million, though changing, continues to serve as a useful mechanism for some investors seeking to transfer generational wealth. 

Economic Factors

Economic factors also play a significant role in shaping the agricultural landscape. Fiscal policy, especially the proposed changes to inheritance tax, has so far had a limited impact on the market. 

Rising input costs, such as labour, energy, and fertiliser are increasing production expenses. Additionally, reductions and uncertainty surrounding support schemes are putting pressure on farm incomes.

However, reforms such as the Land Use Framework, Local Nature Recovery Strategies, and the Planning and Infrastructure Bill may stimulate new demand from natural capital and diversification sectors. 

Potential further reductions in interest rates could enhance affordability, while generally buoyant agricultural commodity prices provide a positive backdrop. Conversely, a slowdown in the housing market may lead to fewer rollover transactions.

Outlook

The outlook for 2026 and beyond is generally positive, supported by limited supply and driven by demand from a diverse array of buyer profiles. 

The agricultural property market in the South West remains resilient and competitive, with prices expected to remain broadly stable. 

While continued competition for the best-quality properties may be anticipated, fiscal and economic pressures might temper the value of marginal farms and land in the short to medium term. 

Realistic pricing will be critical in securing buyers, along with effective bespoke marketing strategies and the selection of the most appropriate method of sale.

Our team of specialist agents have years of experience in selling all types of rural properties, find out how we can help you in our video about our Farm Agency service.

So, if you’re considering selling, contact your local rural agent as GTH are here to support and guide you through this major life decision.