FARMERS are fighting back and buying more land, according to the latest survey by the Royal Institute of Chartered Surveyors.
Nationally, the share of land bought by non-farmers slipped back from 51pc to 43pc in January-March this year.
Individual farmer buyers accounted for 43pc of the market, up from 38pc, encouraged by improved commodity prices in certain sectors.
In the Yorkshire and Humber region, sales in the first quarter were split equally between farming and non-farming buyers.
The demand for commercial farms is also rising steadily, with 43pc more surveyors reporting a rise, a new five-year high.
RICS say farmland prices averaged £8,262 a hectare in the 12 months to the first quarter of this year, up 12pc on the same period last year and higher than the 7pc rise in the fourth quarter of last year.
The rise continued to be exacerbated by a decline in the availability of land on the market. Much of the shortage was put down to a lack of certainty among landowners about CAP reforms, such as the issue of entitlement on sale of land, despite the Government's recent announcement on single farm payments.
Chartered surveyors across the Yorkshire and Humber region are reporting strong demand leading to higher prices.
Christopher Orme of Strutt and Parker in Harrogate said: "Supply is very short. Small parcels of land, when they do come on the market, are showing a high premium above average price."
Ian Cox of Dacre Son and Hartley in Otley said: "The lack of supply still serves to prop up prices both for sales and rentals. Any farms with residential appeal continue to generate great interest and strong prices."
The picture is similar in York. Andrew Fallows of Carter Jonas said: "Small parcels of land are coming to the market and this under-supply has seen sales in excess of £3,000 per acre."
Nationally, the volume of sales reported in the first quarter of 2004 dropped considerably from the previous quarter's 84pc to just 34pc, but much of that was put down to seasonal weakness. Nevertheless, sales activity was substantially down during the past year by 51pc.
However, RICS is confident about the outlook for land prices, which are close to a 6-year high, suggesting that farmland will continue to see strengthening prices in the next few quarters.
Julian Sayers, RICS rural spokesman, said: "For the first time since 2002, the influence of non-farmer buyers is decreasing in favour of farmers. This has been brought about by an improvement in the returns for certain sectors and growing certainty regarding the outcome of the CAP mid-term review.
"Chartered surveyors believe, however, that some farmers are holding back until the final implications of the single farm payment regime are known."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article