For the second consecutive quarter, UK farmland has increased in value. Farmland, now at £5,000 per acre ($7,900), is just £125 lower than its record high in June of 2008, according to property consultancy, Knight Frank.

Andrew Shirely of Knight Frank said, "The farmland market has now regained much of the ground it lost after the credit crunch, when sales virtually ground to a halt. Prices have risen by over 3% in each of the past two quarters." In a July article from Property Wire, UK farmland values are expected to continue to increase by 6% over the next 12 months.

Farmland is a very attractive investment. Investors are always looking for a safe place to invest that has stable returns, and farmland provides those qualities. Alternative energy could increase farmland's return substantially. Wind energy provides a possibility to increase returns on farmland by selling off wind rights to wind energy companies.

Shirely explained, "There's a feeling that agriculture in the UK has a long-term future, so farmers are keen to buy land. We're also seeing early signs of the return of the lifestyle buyer as the housing market starts to pick up again."

Why are values increasing?

There is a high demand for farmland in the UK, and like Andrew Shirely said, investors are looking for a safe place to invest their money. Farmland has proven to be a very safe investment, even globally. Clive Hopkins, of Knight Frank forecasts that values could hit £10,000 ($15,875) per acre, "There is a real shortage of this stuff."

Clive Hopkins is right, there is no more UK farmland being made and that is a driving factor of its increase of value.

- Colvin