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Photo: SuperAgronom.com
In Great Britain, more farms are currently on the market than at any point in the last two decades, as increasing expenses, falling revenue, and inheritance tax reforms are adversely affecting 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 rose to 177—this is the highest figure for any six-month period since 2007 and is 16% above the five-year average.
“Predominantly, smaller farms are entering the market,” noted Sam Holt, head of the company’s property department. “The last few years have been genuinely challenging for the agricultural sector.”
According to Holt, the surge in prices for fuel, fertilizers, and equipment, extreme weather conditions, along with a reduction in subsidies for farmers, have led to a sharp decrease in income.
Crop farmers have been particularly hard-hit by high fertilizer prices, as well as low wheat prices. This has impacted 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 declined 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 any holding under 500 acres (200 ha) as a “small farm.”
The number of farm holdings in Great Britain has been steadily declining for decades, with larger estates absorbing smaller ones 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 following Brexit have caused a significant drop in the income of many holdings.
Direct payments, which farmers received under the EU’s Common Agricultural Policy, have been replaced since 2021 by a new scheme where farmers must apply for funds in exchange for adopting environmentally friendly practices, such as reducing pesticide use and cultivating diverse crops to improve soil health.
Shifts in inheritance tax rules for farmers have also negatively impacted 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). Following 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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