The latest sector index has revealed that the value of farmland in Scotland has largely remained static for the first half of this year, down by just 0.2% to £4,357 per acre.

The data from the Knight Frank Scottish Farmland Index states that year on year values have fallen by 1.7% but are still 26% up over the last five years, while over the last 10 years they have increased by 169% and over the last 20 years they have risen by 174%.

The figures also illustrated that high quality arable land has stayed at £9,046 per acre, while there was a fractional fall in the price of permanent pasture to £2,719 per acre and overall there has been a relatively small amount of market activity so far this year despite a hold up in prices.

Head of Scottish Farm Sales at Knight Frank, Tom Stewart-Moore, said that this year has seen a small number of farms sold, with less than normal launched around the time of the Royal Highland Show, which is traditionally the point when the market kicks into action.

Stewart-Moore added: “Combined with the continued slump in commodity values, many people were expecting a rush of farms to the market in 2016 and a subsequent drop in prices,’ he pointed out, adding that low interest rates mean there have been very few forced sales so far.”

He also stated that demand for livestock and good quality arable is outstripping supply, while demand has stayed strong for amenity and supporting estates.

Recently, Knight Frank sold the 6,500 acre Kinnaird Estate in Perthshire for more than its guide price of £9.6 million along with an 8,000 acre stalking estate in Sutherland, which will be launched soon and will provide another good test of the market.

Stewart-Moore also said he is expecting more interest from buyers from overseas.