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Photo: SuperAgronom.com
In Great Britain, more farms are currently on sale than at any other time in the last two decades, as rising costs, declining revenues, and inheritance tax reforms are negatively impacting small farm holdings, accelerating industry consolidation, reports the Financial Times.
According to the real estate agency Strutt & Parker, the number of farms listed for sale in the first half of the year increased to 177 — this is the highest figure for any six-month period since 2007 and is 16% above the average for the last five years.
“Primarily small farms are entering the market,” noted Sam Holt, head of the company’s property division. “The last few years have been truly challenging for the agricultural sector.”
According to Holt, the increase in prices for fuel, fertilizers, and equipment, extreme weather conditions, as well as the reduction in subsidies for farmers, have led to a sharp decline in income.
Crop farmers have been particularly hard hit by high fertilizer prices, as well as low wheat prices. This has affected land values: in the first half of the year, arable land prices were 6% lower compared to last year. The value of pastures has also decreased by 3%.
The average size of farms put up for sale since the beginning of this year was 330 acres (132 ha). Strutt & Parker classifies all holdings with an area less than 500 acres (200 ha) as “small farms.”
The number of farm holdings in Great Britain has been steadily declining for decades, as larger operations absorb smaller ones that are facing financial difficulties. According to the agricultural consulting firm Anderson Centre, the number of farms operating on a permanent basis decreased from 66,510 in 2000 to 55,980 in 2010 and 51,350 in 2025.
Changes in England’s agricultural policy after leaving the EU have led to a sharp drop in the income of many holdings.
Direct payments that farmers received under the EU’s Common Agricultural Policy have been replaced since 2021 by a new program where farmers must apply for funds in exchange for adopting environmentally friendly methods, such as reducing pesticide use and cultivating diverse crops to improve soil health.
Changes in inheritance tax rules for farmers have also negatively affected the market. In 2024, the government announced that from April 2026, it would abolish inheritance tax reliefs for farmers whose assets exceed £1 million ($1.34 million). After intensive lobbying from the industry, the government raised this threshold to £2.5 million ($3.35 million).
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Olena Basanets, SuperAgronom.com
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