THE rise in house prices generally is being mirrored in the increasing amount of money being paid to buy a place in the country.

Estate agents Strutt & Parker report that non-farm buyers in many parts of the country are out- bidding farmers in an attempt to purchase land.

In many cases they pay a neighbouring farmer to manage the land while they enjoy the privacy and amenities the farm has to offer.

Farms in the south west have long proved attractive to wealthy residential buyers and their willingness to pay high prices to secure a slice of rural life has now spread further afield, according to Strutt & Parker's 2002 review of land prices.

Some non-farmers have been willing to pay up to £1.5 million for the right estate, usually including a period house and good shooting.

"The residential element in farm value is now nearly 50 per cent," said Ian Hepburn, head of farm agency at Strutt & Parker.

"Pride of ownership, sporting and amenities count far more than economic farming returns, but a willing neighbour to farm the land is a necessary requisite."

The 2002 review shows arable land prices being pulled up by nationwide property values, despite the continuing drop in farm incomes.

Other attractions that have been fuelling residential interest in buying farms include:

taking advantage of the generous inheritance and capital gains tax provisions available for farmers;

homeowners buying up adjacent fields in order to protect views and stop further development.

But, said Mr Hepburn: "The need for realistic prices will become paramount.

"Residential buyers will become more particular, with greater emphasis being put on public access, road noise and location.

"And in areas well away from population centres, the continuing poor returns from agriculture are being felt in commercial land prices."

Strutt & Parker statistics reveal a large drop in the regional average price for arable land where there is no interest from non-farming buyers.

But despite hard times in farming there is no sign of a great exodus from the land.

"The resilience of farmers should never be underestimated," said Mr Hepburn. "Where other businesses would have packed up or failed years ago, a large majority of farmers are still determined to carry on, waiting for the better times they hope lie ahead."

Arable land prices have risen from a 2001 low of £2,267 an acre to £2,486 an acre last September, according to the Strutt & Parker arable land index.