FARMLAND prices have been taking a tumble and are not expected to pick up this year.

That's the verdict of a survey by the Royal Institution of Chartered Surveyors who said the average price of farmland per hectare fell from £7,695 to £6,415 - almost 17 per cent - in the run-up to 2003 and showed the sharpest fall since the institution started its survey in 1995.

Regions most hit were the East Midlands and the South East where there were significant falls, yet prices in Wales and the South West showed signs of picking up, following falls earlier in the year.

Bare land prices also took a dip, from £6,404 in the previous quarter to £5,738, reflecting the depressed commercial farming sectors. The outlook for dairy farms seemed especially bleak, said the institution. Herefordshire prices are good, according to David A Thompson. He said arable accommodation land, even non-IACS, was selling well at £3,250 to £4,000 an acre, and whole units with house and buildings up to £5,000 an acre.

A number of purchasers were actively looking for property but not a great deal was on the market.