Demand for land still strong - Nixon

Despite volatility with farm gate prices, interest in purchasing farmland remains strong, according to auctioneer Robert Nixon.

“It's a healthy market. Despite a drop in the price of milk, dairy farmers are still looking to purchase land. There is also a lot of interest from business people. If they have money available to them, it makes more sense to invest in land as opposed to a property because there are less headaches associated with land and it is tax-free if the lease is over five years, whereas property tax is closer to 50%. Any of them who are in a position to purchase land are doing it and then renting it out to local farmers,” he explained of some of the factors driving demand and prices for agricultural land.

To illustrate the point, Mr Nixon referenced an executor's sale where 71 acres, divided into several lots, sold for a total of €920,000.

“The headliner was 12 acres at Fortland, Kilnaleck, which sold for €245,000 by private treaty, despite having no farm buildings. It has stunning views overlooking Lough Sheelin, making it a fabulous place to build, which added to the value of it,” he said.

Also part of the same estate was 15 acres and an old derelict house at Killyfassey, Mountnugent, which made €260,000; 24 acres in Gallonbane, Crosserlough, which sold for €240,000; and 20 acres at Belcrove, Kilnaleck, which achieved €175,000.