WOULD-be buyers of farmland in Yorkshire, armed in total with £80 million to spend, have come knocking at the door of one York estate agency this year.

FPD Savills of Micklegate has announced the figure as part of its own investigation into the demand which is clearly outstripping supply and is even greater than last year's.

The analysis, which shows that 63 per cent of applicants are cash buyers, with more than half seeking properties worth £1 million or more, suggests that in spite of a tough recent past, there is still faith in agriculture for the future.

Andrew Black, director of the FPD Savills York office said today:

"It is wonderful that people are still prepared to invest in farming in North Yorkshire.

"It augurs well for the likelihood of land prices holding up in spite of downward pressure because of lack of profitability which has prevailed for almost five years amid crisis after crisis."

But there is no immediate sign of a major let-up in the demand in North Yorkshire, although an increased number of North Yorkshire farms will be advertised next month.

They will include 450-acres of productive bare land near Selby, plus a 240 acre "residential farm" with Georgian House in Stillingfleet.

The analysis shows that those who have approached the York office - both farmers and people seeking to buy country homes - are from all over the UK.

There is an even spread between those seeking commercial arable units, grassland and amenity farms but the market for fully equipped farms of more than 350 acres is a national one.

Last year the bulk of cash buyers were seeking plots of 500 acres or more. This year the demand is more evenly spread from 200 acres upwards.

The analysis report concludes: "Applicants for grass farms vary from those seeking small amenity or 'hobby' farms through medium-sized stock farms, to a surprising number seeking well-equipped dairy units for more than £1 million.

"The trend may continue until the restructuring following the foot and mouth has been completed."

Mr Black and his team also found that there is an increasing number of buyers for residential farms, 82 per cent of them prepared to pay cash.

They preferred mixed farms with amenity value, but location and quality of the house was of prime importance.

But there was rarely a clash of interests between the farmer buyers and the residential "lifestyle" investors.

Mr Black said: "Generally the farmers are looking for arable land of more than 300 acres or land adjacent to their existing farms, whereas the residential purchaser will be looking for smaller plots."

Many of the non-farming investors were predominantly looking in North Yorkshire in countryside within commuting distance from conurbations like York, Harrogate and Leeds.

The analysis also found that -

- Most of the land-seekers were farmers - but 24 per cent were "private land owners" looking for farmhouses

- Only 48 per cent of the farms sold in North Yorkshire were bought for expansion purposes, with a number of farmers either re-locating to smaller units or buying for residential or sporting purposes.

- Particularly sought after were properties with up to 50 acres in the £250,000 to £350,000 price bracket.

Updated: 10:55 Tuesday, February 26, 2002