Farms-for-sale market buoyant

The sale of a West Midlands farm for more than its asking price represents a notable counter-trend in a marketplace where sellers are increasingly forced to lower their expectations.

In a 2010 BusinessesForSale.com survey 87% of business brokers reported that most of their clients had to accept lower than their initial asking price to achieve a sale.

But with credit still scarce and the economy on the brink of a double dip, the sale of Pennwood Farm for more than £1.6m shows that land prices, like property prices, are among the most resilient asset classes.

There continues to be strong demand for farms for sale of all types, according to the business transfer agent who oversaw the sale of the 283-acre arable farm near Wolverhampton.

Soaring food prices mean arable farming is immensely profitable, although livestock farming is suffering from the rising cost of animal feed.

We have a list of potential investors waiting for an opportunity to buy land, which remains a secure investment in the current economic climate

Shaun Jones, Halls business transfer agents

The sale of the farm, which also incorporates an equestrian livery business, was sold on behalf of A and J. Mucklow and Co Ltd, which is selling a farm it has owned since 1964 to focus on its core business, commercial property investment and development.

The farmland includes a 21,750 square feet indoor floodlit stables with 29 substantial loose boxes, a further brick building, a triple-span Dutch barn with lockable steel doors and concrete walled manure store.

Situated between Wolverhampton and Bridgnorth, Pennwood Farm was bought by a local farmer seeking to expand his arable growing capacity.

Shaun Jones of Halls, the Shrewsbury-based agents who completed the deal, says:

"There continues to be very strong demand for agricultural property of all types across Shropshire, the West Midlands and Mid Wales. We have a list of potential investors waiting for an opportunity to buy land, which remains a secure investment in the current economic climate.

"We would be happy to advise anyone who is considering selling a farm or a block of land."