The price of farmland in England and Wales fell again in the third quarter of 2026, as drought-hit harvests and rising costs left farmers with less money to spend on land, according to figures from property consultancy Carter Jonas published on the eve of today’s Autumn Budget.
Average arable land values fell 1.1% to £9,361 per acre in the three months to September, while pasture slipped 0.7% to £7,694 per acre, FarmingUK reported. Arable values now stand 4.6% below their peak in the first quarter of 2025, and pasture 3.3% below.
The decline comes even as working farmers dominate the market. Separate research from Strutt & Parker found that farmers accounted for 62% of farmland purchases in England in the first nine months of the year, their highest share in more than a decade, while the acreage publicly marketed in the third quarter fell to 22,800 acres, 16% below the five-year average and down from 33,800 acres a year earlier, according to Agriland. Strutt & Parker put average prices over the period at £10,600 an acre for arable land and £8,700 for pasture.
Andrew Chandler, head of rural agency at Carter Jonas, pointed to “drought-affected harvests, higher fuel, feed and labour costs” as the pressures squeezing margins, adding: “That feeds directly into how much farming buyers are able, and willing, to pay for land.”
Sam Holt, head of estates and farm agency at Strutt & Parker, said “England’s farmland market continues to demonstrate resilience”, and noted speculation that the Treasury may be considering reversing the inheritance tax reforms that took effect earlier this year.
Land is the largest asset on most farm balance sheets, and its value underpins borrowing for new buildings, diversification and succession. Softer prices, thin supply and a buyer base made up mostly of neighbouring farmers point to a market in which capital is tight and decisions are on hold until the Chancellor sets out the government’s plans this afternoon.
For rural communities, the direction of the land market will shape whether family farms can expand, pass to the next generation or invest in the diversification projects that keep money circulating in the countryside.
Sources: FarmingUK, 27 October 2026 · Agriland, 13 October 2026 · FarmingUK, 13 October 2026. Featured image: Dave Spicer / geograph.org.uk, CC BY-SA 2.0.
