ARABLE land values have been resisting strong falls and bumping along within a range of £2,400 to £2,600 an acre, according to national estate agents, Strutt and Parker.

During the three months to June of this year, however, they again hit the bottom of the range. Shorter supply, partly because of foot and mouth and strong residential values, could be shielding an even greater drop. The fall of seven per cent is against a two per cent fall to £2,560 an acre during the same period a year ago.

Over the year, arable land values have eased by just over six per cent and the firm's computer-generated forecast expects prices to fall further.

The value of the residential element of farms has remained fairly constant over the past six months, averaging about 45 per cent compared with 32 per cent during the first half of 2,000.

If the trend continues, the residential element of farms could reach more than fifty per cent of the total value, says Strutt and Parker.