Farmland prices in the UK have fallen for the first time in nearly five years, indicating a widening gap between high-quality and poorer land.
Average arable land values decreased by 1.5% in the third quarter of 2025, following a 1.1% decline in Q2, according to the latest Farmland Market Update from Carter Jonas. Pasture values also dropped by 1.2%, resulting in averages of £9,556 per acre for arable land and £7,806 for pasture.
This marks the first year-on-year decline since 2020, with arable values down 1.7% and pasture down 1.1% compared to 2024. Prior to this, prices had remained steady or risen for 17 consecutive quarters.
Carter Jonas reports that performance now heavily depends on land quality and location.
Author's summary: Farmland prices drop for the first time in five years.