The average value of English farm land rose by almost 3% in the second three months of 2014 to £7,517 an acre, according to the latest index report from Knight Frank.

During the past 12 months values have increased on average by 17% and over the past 10 years by 208%, the data also shows. This compares with 244% for gold, 135% for prime residential property in central London, 52% for the FTSE 100, and just 23% for average UK house prices

The report points out that availability remains limited. So far around 16% fewer acres have been advertised publicly for sale this year, according to the Farmers Weekly Land Tracker Index. Even taking into account the off market 17,800 acre sale of the Co-op portfolio, supply is historically subdued.

At the same time demand continues to be buoyant, particularly from investors. The firm has  received a number of enquires over the past few weeks from funds and the representatives of wealthy individuals analysing the market with a view to making an investment in farmland.

‘Potentially there could be more pension funds and institutional buyers in the market. There are some good deals happening off market,’ said Tom Raynham, head of Knight Frank’s Agricultural Investment team.