According to Knight Frank’s Farmland Market Index, pasture and arable land hit £8,000 per acre in parts of England, prime arable land is now worth on average £6,000 per acre across England and, on average, pasture land is currently worth over £5,300 an acre.

The highest values for prime arable land are in the south-west of England which tops £6,000 per acre. The most expensive grassland in Cheshire and Berkshire for the best pasture is £8,000 per acre.

Andrew Shirley, head of rural research at Knight Frank, said: “ What these figures show is the demand for all types of land in England is still extremely strong. The limited amount available to buy means the difference in price between top-quality and average soil is relatively small. Despite the credit crunch that is affecting other property sectors, agricultural land is still in demand from a wide variety of buyers. There are a number of funds in the market prepared to pay premium prices for the few parcels of land they are able to buy.

“The big question is how long can this trend continue? My feeling is that prices will continue rising but we have already seen the strongest period of growth. However, farmland certainly isn’t a bubble waiting to burst and in these uncertain financial times is still likely to appeal to investors looking for a safe home for their funds and farmers wanting to expand their acreages.”