Jubilee fields of gold rise 10,000% English farmland has soared in value since the Queen ascended the throne - up by more than 10,000 per cent in the past 60 years. But advisers warn that prices may now have peaked - and tax reliefs are becoming less favourable. Research from agent Knight Frank shows that an investor who paid an average of £56 for an acre of land in 1952 would get £6,073 if they sold today. This is slightly lower, however, than the price they could have got in June last year when the average cost of an acre of land reached £6,156. IN Property & Mortgages Andrew Shirley, head of rural property research at Knight Frank, says: "Queen Elizabeth II has presided over a huge increase in the price of farmland . . . land prices have increased during every decade of the queen's reign." But he admits that there have been sharp differences during each 10-year period, with growth often strongest at times of economic difficulty. He says it was not until the 1970s that land values really began to take off, rising by 390 per cent between 1972 and 1982. A key factor then was the UK joining the European Economic Community in 1973, allowing farmers to benefit from the Common Agricultural Policy and its farm subsidies. At the same time, investors started to buy into the farmland market, attracted not only by the benefits that came with membership of the common market, but also by the relative safety of farmland as an asset class while the UK's economy sank into recession and inflation spiralled out of control. Renewed interest from investors in recent years has been driven by the combination of a growing population, rising soft commodity prices and the drive to find sustainable alternative fuel sources - while farmland remains in limited supply. David Hebditch, head of the rural department of Chesterton Humberts, says: "The ongoing debate over global food scarcity and the ability to meet the demands of growth in the world population is being taken seriously by investors, who appreciate the supply of land will be paramount in resolving the issue." He added that the low correlation between yields for farmland and those for other mainstream assets, coupled with the tax planning incentives of owning land; relating principally to income tax, capital gains tax and inheritance tax, have also enticed investors to add farmland to balance their portfolios. To capture some of this investor interest, Brooks Macdonald Funds this week launched an asset-backed investment business, UK Farming targeting an initial fundraising of up to £20m. The unquoted public limited company will target investment in existing arable farms, primarily for the production of cereal crops. But not everyone is so bullish. Catherine Penman, head of research at Carter Jonas, the property consultancy, says: "Lots of people refer to agricultural land as "green gold" and see it as a "safe haven," but the top is definitely coming off this sector. Investment yields are very low - only about 1 per cent at best - and prices in some areas are starting to plateau. Others point out that the tax benefits have been reduced. Saffrey Champness, the accountants, warns that the government's recent cap on tax relief for trading losses may have adverse consequences both for established farm businesses and for investors. "The measure [to cap reliefs at either 25 per cent of annual income, or £50,000, whichever is the greater] will restrict the ability of individuals to offset trading losses," says Richard Cartwright, Saffrey Champness. Farm businesses can have an erratic performance due to the unpredictable nature of farming, and could suffer if the tax relief they currently receive from trading losses is restricted.