Price of agricultural land 'set to increase further this year'
Growth in the price of agricultural land looks set to continue, with an increase of an average of 6% looking likely this year, according to a report by the Society of Chartered Surveyors Ireland (SCSI).
In its major new survey, chartered surveyors, auctioneers, and valuers operating in the agricultural and rental markets say sales activity was boosted by the exit from Covid restrictions and they predict prices will continue to rise, underpinned by strong demand and a continuing low supply of land for sale.
The price of good land showed the biggest increase in 2021 - up by an average of 17% nationally from €9,381 to €10,962 per acre.
The price of all non-residential land, on holdings of less than 50 acres also showed significant increases. In Leinster prices were up 12%, in Munster they rose by 14% while the increase in Connacht / Ulster was 5%.
In Westmeath, prices ranged from €6,140 per acre for poor quality land to €12,570 for good land. The figure of €12,570 was up from €11,200 in 2020.
In Roscommon, meanwhile, good quality land was fetching €9,167, while lesser-quality land was going for €4,127.
Kildare was the most expensive county, with good quality land there fetching an average of €15,350 per acre.
The SCSI / Teagasc Agricultural Land Market Review and Outlook Report for 2022 indicates that demand for rented ground remains strong, with rents this year expected to rise by 10% nationally.
Looking at the provincial picture, agents expect rents to rise by 12% in Leinster and by 9% in Munster and Connacht/Ulster.
Last year Leinster recorded the strongest rental growth figures with rental prices for silage, grazing, potatoes, and other crops rising by between 18% and 29%.
The survey of 95 auctioneers and valuers from all over the country was conducted in February and March 2022.
Dillon Murtagh of Murtagh Bros in Mullingar, a member of the SCSI’s Rural Agency Committee, said the lifting of pandemic restrictions boosted sales activity and market confidence.
"In our survey, 53% of SCSI agents reported an increase in the volume of land sold when compared to the previous year while 24% reported that the volume of land sold remained the same.
"In addition, two thirds of valuers reported an increase in the percentage of valuation requests for the transfer of land. This is up from 43% in 2020. These are positive trends and show confidence in the market from sellers and buyers," said Mr Murtagh.
He added that one of the consequences of the pandemic was that more people were now working from home and seeking a better work-life balance outside of the main urban centres.
"It's worth noting that typically residential farms of less than 50 acres are around 20% more expensive than non-residential farms of similar size," he said.