AN AUCTION of two parcels of farmland near York and Selby later this month will test the market.

National property consultancy Carter Jonas is handling the sales of three lots of 93 acres at Knapton, owned by York City Council, and a receivership sale of 65.5 acres at Brayton, Selby.

They go under the hammer at the Parsonage Country House Hotel, Escrick, at 3pm on Monday, March 22.

The land at Knapton has outline planning permission for a new farmstead. The land at Brayton has no planning consents, but adjoins a residential development. Significantly, under the new Common Agricultural Policy Mid Term Review (MTR), the former occupiers of the land were eligible for subsidies, but they took those entitlements with them.

The MTR will phase in an area-based payment from 2005. Although subsidies will continue based on 90 per cent of personal historic claim, initially only ten per cent will be on the acreage.

This will increase year by year until 2012 when the area element will be total.

Andew Fallows, of Carter Jonas, Micklegate, York, said: "It means that for the time being, the sale of this land is a real test of the market in our region, but in its favour is the fact that the Knapton land is just outside the York ring road, while a council highway borders one side of the Brayton site.

"I can foresee non-farming interests being strong, particularly since the land scarcity element in the run-up to MTR is bound to play a part in the bidding.

"There is no historic entitlement available on either site and it will be interesting to see how the market will value 'naked acres'."

Updated: 09:52 Wednesday, March 10, 2004