Agricultural land market resilient amid tight supply and steady demand

Across Scotland, the availability of farms and land for sale remains limited, which many agents say is helping to support prices even as buyers become more selective. According to recent market reviews, around 28,000 acres of farmland were publicly marketed in 2025, a figure below both 2024 levels and the five-year average.

The majority of those sales involved smaller units, with most holdings coming to the market at under 500 acres. This reflects the continued reluctance of many farming families to sell productive ground, while estate-scale opportunities remain relatively rare.

Prime arable land in Scotland’s east continues to command the strongest prices. In areas such as East Lothian, Angus and Fife, good-quality farms with scale, strong soils and modern infrastructure are still regularly achieving over £10,000 per acre, with some exceptional holdings reaching £15,000 per acre.

Farm agent with Strutt & Parker in Scotland, Douglas Orr said the resilience of the market had been notable despite a challenging backdrop for agriculture.

“2025 was a year that will stick in the mind due to the noise and external pressures which created a sense of uncertainty in the market,” he said.

“However, farmland values held firm, supported by steady demand and reduced levels of supply.”

Mr Orr added that strong competition for well-located farms was still evident, particularly where units offered a combination of productive land, buildings and the potential for business diversification.

“Provided we see no significant economic or policy shocks, values are expected to remain firm, with well-located and productive farms continuing to attract serious interest,” he said.

While prime arable ground remains the star performer, the picture is more varied in other sectors of the market. Average arable land values have been estimated at around £8400 per acre, with good pasture averaging roughly £7400 per acre, although top-quality examples can exceed those figures.

In contrast, hill ground and marginal land have shown a far wider range of prices, typically between £1000 and £4000 per acre depending on location, sporting value and potential for forestry or environmental schemes.

Agents note that demand for hill land has softened slightly compared with recent years when investors seeking opportunities in forestry, carbon offsetting and biodiversity projects were highly active. That shift has created opportunities for traditional farming buyers to re-enter the market for upland units.

“Demand from forestry and natural capital investors has eased in some areas,” said one industry commentator. “As a result, farmer buyers are once again competing strongly for hill farms, particularly where they complement existing livestock enterprises.”

The changing policy landscape is also shaping decisions among landowners and buyers alike. Ongoing debate around Scotland’s Land Reform Bill, which could give ministers powers to intervene in certain large-scale land sales, has created some uncertainty at the top end of the market.

At the same time, discussions around tax and succession planning have encouraged some farming businesses to review their asset structures. In a number of cases this has resulted in non-core land or outlying blocks being brought forward for sale.

“There has certainly been some restructuring taking place,” Mr Orr explained.

“Changes to taxation and wider policy discussions have prompted some businesses to consider whether their current landholdings remain the right fit for the future.”

Despite these pressures, the core driver of the Scottish farmland market remains the farming sector itself. Industry data suggests that farmers continue to be the dominant buyers of agricultural land, particularly where holdings can expand existing enterprises or improve operational efficiency.

Competition for land can be especially strong when farms come to the market in blocks that offer scale and good infrastructure. In several recent transactions across the east of the country, guide prices have been exceeded following competitive bidding from neighbouring farmers and established agricultural businesses.

Looking ahead to the rest of 2026, agents expect the overall direction of the market to remain broadly stable, although much will depend on wider economic factors including interest rates, farm profitability and government policy.

The supply of farms coming to market will also be closely watched. A limited number of opportunities tends to support prices, but it can also make it difficult for expanding farm businesses to secure additional land.

For now, however, the Scottish farmland market appears to be holding its ground.

As one agent summed up: “Land remains a long-term asset and, for many farming families, it is something they are reluctant to part with. When good farms do come to the market, they continue to attract strong interest.”