STRONG demand from non-farmers has pushed land prices to a record high.

They snapped up more than half the farm land sold, according to the latest survey by the Royal Institute of Chartered Surveyors, but it is unclear whether farmers are being squeezed out of the market or simply choosing to stay away.

The survey, covering the fourth quarter from October to December 2003, shows individual non-farmer buyers now account for 51pc of the market nationwide, up from 45pc in the previous quarter.

The share of farmer buyers has fallen to less than 40pc in some areas, although in the North-East and North-West, it is 52pc

Demand is highest for land with residential property, and demand for commercial farmland is also rising.

Market activity is being supported by demand from non-farmer buyers who are willing to pay high prices and are little concerned with the outcome of the coming changes in the agricultural support rgime.

Many farmers, on the other hand, are waiting for the outcome of the UK's proposals for CAP reform before pursuing their future business plans.

Yorkshire chartered surveyors believe the shortage of available land will lead to price increases and is largely due to uncertainty over the MTR.

Andrew Fallows of Carter Jonas in York said: "The sooner Defra announces how the Fischler reforms to the CAP are to be implemented, the sooner the land market will return to a form of normality."

Ian Cox of Dacre, Son and Hartley in Otley said: "A distinct lack of land and farms is keeping prices buoyant. Lack of supply may be due in part to potential vendors holding back pending the outcome of the MTR."

Despite the depleted supply of available farmland and buoyant non-farmer demand, surveyors' price expectations for early 2004 are less positive.

The price of all farmland over the 12 months to December averaged £7,931 a hectare, up 7.3pc from the same period in 2002.