DESPITE the challenges facing all sectors of the industry, a healthy level of interest remains for an increased amount of farmland now coming on to the market. 
That is the viewpoint of two major estate agents, who claim that although continued low commodity prices have created a certain amount of uncertainty, a strong local demand for farms placed on the open market or for parts of bare land, continues. 
“The prophets of doom are wide of the mark,” said Simon Brown, head of farm sales at CKD Galbraith, who added that the company is actively involved in sales all over Scotland, with a large range of farms currently available on the open market as well as a further collection for sale privately. 
Despite recent lacklustre UK and worldwide economic forecasts, Mr Brown said farmland is still seen as a stable strategic investment capable of providing a small but consistent return and is therefore a good medium to long term investment. 
Land, he said also provides a useful strategic investment for tax planning purposes for those taking advantage of inheritance tax relief and capital gains tax rollover relief.
The recent large increases in grant aid available for commercial forestry have also helped to increase the demand for bare land in the uplands which is capable of being afforested. 
As a result, he advised those looking for business expansion opportunities, to consider selling hill ground for forestry planting and taking the opportunity to move to farms with better quality grassland where output per acre and the improved quality of stock carried may provide the opportunity for increased returns. 
Latest research from estate agents, Savills, also points to a better than expected demand for farmland, despite a 43% increase in the amount of land being offered for sale on the Scottish market compared to a modest drop south of the Border. 
Viewer numbers in Scotland are nevertheless up compared with the same period last year, according to the company’s Evelyn Channing, who said there are several reasons why the Scottish market is bucking the UK trend. These include referendum fatigue, improved bank lending, value for money and the desire to diversify farming income. 
“Although it is early days for many farms launched on the open market across the length and breadth of Scotland, viewer requests and pre-emptive offers paint an unexpectedly positive picture in an industry beset with concerns. In addition, there is a strong appetite from farmers who are looking for purchasing advice in this uncertain market.
“The farming industry is largely dependent on subsidies, and as such we anticipated a pause in market on the run up to the EU vote, but this has not been the case. 
“Coming hot on the heels of the Scottish Referendum and local elections, a level of fatigue has set in and the EU debate has had minimal impact north of the Border as a result." 
Ms Channing added: "Our advice to sellers has not been to hold back until after the vote, but to launch their farms; albeit with delayed closing dates for any pre-referendum nerves. 
“In terms of buyers, we are seeing those who wish to stay in farming for the long term gearing up to expand. Again, this strategy is operating regardless of the EU vote. Banks are increasingly supportive of such expanding farms and lending is on the increase.”
The report claims the commercial need to secure value for money has been a greater driver than politics in the current market. 
The gap in values between what is available in Scotland and prices in England and Ireland is therefore attracting a growing number of viewers to Scotland.