A 100-year-old Essex farm is to go on the market for an estimated £200m including its
30,000 acres of East Anglian farm land.
The sale of Strutt and Parker Farms is being seen by analysts as a test for Brexit’s effect on prices. Land prices have been consistently falling since 2015 due to uncertainty regarding subsidies. Arable farm land prices peaked in 2014 at £10,000 per acre and this has now fallen to £9,000.
The falling number of migrant workers on farms has also led to a raise in costs for farmers thus reducing farm profitability. The government recently introduced a temporary visa scheme for up to 2,500 workers following Brexit in an attempt to solve the issue.
Strutt and Parker received £1.27m in total subsidies through the rural payments agency last year, income for the Essex farm sits at £21m per year. Deloitte and estate agents Savills are handling the sale.
David Jones, a corporate finance partner at Deloitte, said: “In our experience, interest is likely to come from a number of sources, due to the scale and diverse asset base, and we anticipate there will be interest from both domestic and overseas high-net-worth individuals.
“For the overseas buyer, the current weakness of the pound against the dollar adds to the attraction. We also anticipate enquiries from institutions looking for long-term asset-backed investments.”