Why is a farm so valuable if farming is not profitable?

Posted by Kitchen_Narwhal_295@reddit | AskUK | View on Reddit | 376 comments

In the news about changing the inheritance tax exemptions for farmland, it is generally recognised that many farmers have big assets on paper but not much money coming in to cover tax bills. Why is a farm so valuable if it doesn't bring in money? Does it imply there is another use for the land that would bring a much bigger return? If an asset of that value brings in such a small yield, why aren't loads of people selling up and thereby reducing the price? Is it just attachment to the place and way of life or is there an economic explanation?