Farmland prices have risen to an all-time high, according to new figures.

Experts say soaring commodity prices are responsible for the rise.

The Royal Institution of Chartered Surveyors (Rics) said that nationally the value of farmland had gone up by 24pc during the first six months of the year - the biggest increase recorded since its surveys first began in 1995.

Stuart Agnew, Norfolk's delegate for the NFU, said the county's farmland was "hot property" at the moment.

He said: "It is amazing how things have changed.

"About five or six years ago land was about £2,500 an acre. My bank manager is now telling me farmland is about £7,000 an acre and it can go up to £8,000. The price of farmland is roaring ahead.

"The value of your land does not make a huge difference to you unless you want to borrow money against it, and the profits you can make from arable farmland will never justify buying land for £8,000 an acre.

"But for those farmers that want to retire it is a very good time to sell, and neighbouring farms will see it as the one and only chance to buy nearby land."

Mr Agnew said part of the reason for the soaring prices in the county was because people wanted to invest their money into something more reliable than stocks and shares, and that there was also a lot of interest from people in Europe, especially Denmark and Germany.

Although there are suggestions nationally that so-called "city slicker" buyers are now retreating from the market in the wake of the credit crunch, Mr Agnew said he could not comment whether this was the case in Norfolk.

Nationally, farmland now costs an average of £12,965 a hectare - 47pc more than it did a year ago.

The cost of arable land soared by 32pc during the first half of the year to an average of £14,453 a hectare, while pasture land rose less steeply, increasing by 16pc to £11,477.

However, purchases by non-farmers, including lifestyle buyers, fell by 10pc during the six months to account for just 27pc of all land changing hands.

Instead, farmers and agricultural businesses were again the dominant buying force, as sharp increases in commodity prices continue to prompt farmers to expand production.

Rics spokesman Julian Sayers said: "Ever-rising commodity prices have pushed the price of farmland to record highs as farmers and investors compete for arable land.

"However, the days of the lifestyle buyer are on the wane. The credit crunch is putting an end to city expansion into the country as the precarious financial situation has made city slickers rethink their lifestyle priorities."

Source: Eastern Daily Press