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Last Updated: Friday, 23 January, 2004, 16:49 GMT
Collapse in farm property sales
Sandy Murray
BBC News Online Scotland

Farm gate - freefoto
There has been a marked decline
Farm sales in Scotland collapsed during the past year, according to the property agents FPDSavills.

Analysis of 2003 indicated an overall fall of 27% but some parts of the country saw a more marked decline, with sales in Strathclyde down by 54%.

The agents said the problem was largely due to a shortage of supply, which could prevent ambitious farmers expanding.

They said the average potential buyer was prepared to spend �2.6m but little or no land was available at that price.

Charles Dudgeon, a Director of FPDSavills, said: "In Scotland alone, we've got over 500 buyers with over �2m each looking for farms."

The root of the problem has been reform of the European Union's Common Agricultural Policy.

The change of rules meant that farmers who sold land could end up losing their entitlement to subsidies.

Because very little land was coming on to the market, ambitious farmers were unable to expand.

Savills said this could hit Scotland's ability to compete as the EU expands.

Young farmers

Some of the countries about to join the EU, such as Poland, have very large farm holdings.

This will increase the pressure for some farmers to leave the land.

According to Mr Dudgeon: "There are 10,000 full-time farmers in Scotland.

"They can't all expand."

Even tougher is the problem facing younger people from a farming background looking to set up for themselves.

But the overall position could be set to improve.

Savills said that the outlook is more positive than it has been for some time.

They pointed to the increase in farm incomes in many sectors over the past year, which they said has introduced an element of stability after the disaster of foot-and-mouth disease.


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