Farmers are in line for higher borrowing costs, as the Bank of England has pushed the base interest rate up by 0.5% to 2.25%, the highest it has been in 14 years.

This means that farms borrowing money on a variable rate interest will see their monthly cost of repayments rise. Farmers looking to buy more land are being advised to speak to their lenders as offers are likely to have changed since the Chancellor of the Exchequer, Kwasi Kwarteng, made his mini-budget, triggering upheaval on the financial markets.

Whilst there are reports of mortgages being pulled by lenders for domestic homes, there have been no reports of farm buyers getting loan offers rescinded.

Dugald Hamilton from the Agricultural Mortgage Corporation said: “We have not pulled a single deal and have no intention of pulling anything. Whether buyers take the offer, is up to them, we do not offer advice. The decision is up to the farmer and they should take advice from their accountant, lawyer and advisor. But its business as usual for us as we will keep lending.”

The land market has been buoyant through most of the year, with large areas of land changing hands through both public and private sales. Values have been strong and rising, as reported by land agents and by investigation by bodies such as Community Land Scotland. Speaking to estate agents, it is still the case that the bulk of buyers are farmers looking to extend their agricultural business, but there is a strong interest from investors.