According to new research, last year the proportion of investment motivated purchasers more than doubled to 31%, suggesting investors have woken up to the benefits of holding farmland. Also the number of new applicant registrations increased by more than 45%; providing further evidence of the current interest in farmland as a strong performing asset.

Since the start of the recession, Savills has highlighted the benefits of investing in agricultural property. It along with gold is a good hedge against inflation and its weak correlation with mainstream assets means it performs well when others are showing poor returns.

In the wake of the improved sentiment for prime country property and predictions for a relatively robust run of commodity prices, Savills research has revised its baseline forecast for average farmland values upwards to 9.7% growth for this year.

Savills latest Farmland Value Survey shows the average value of grade 3 arable land for Great Britain increased by 11% in 2010 to £5,250 per acre. This average figure masked some exceptional prices paid, which in some cases reached well over £10,000 in England and over £7,000 per acre in Scotland .

Antony Oliphant at Savills Nottingham comments: "Farmland values locally increased by 14 percent which exceeded the national averages. This reflected renewed optimism within the farming sector as well as wider interest in farmland as an investment class."

He continues "During 2010 we sold land in Leicestershire and Nottinghamshire to investors seeking to diversify their investment portfolio and to take the taxation advantages of land ownership. "

However, with the supply of farmland across Great Britain in an historical context remaining tight at 158,000 acres, values could only move one-way.

Other buyers are taking a longer term view as to the value of strategically placed land to satisfy future housing growth. In these situations both grassland and arable land have found ready buyers. In the county of Nottinghamshire there is an abundance of urban fringe areas to which this market applies.

Mr Oliphant adds "it remains the case that farmland must not be overpriced for sale and be the right product i.e. arable land unless other attractions apply. investors are no different to farm buyers; they are discerning and careful, assessing the market and other opportunities."

"This year we are expecting strong interest in properties we are bringing to the market; a mixed commercial and farmland property in Leicestershire, strategic land on the Notts/Derbsyhire boarder and a residential Estate in Derbyshire which provides farmland investment with a period house. "