Land value growth spurt for farmers

FARMLAND has risen in value by over 25% nationally in a single year, according to the annual property survey of the Irish Auctioneers and Valuers Institute (IAVI).

The survey revealed that, in some cases, the rise was as high as 27% to 28% — one of the highest increases ever experienced. A huge supply of farmland also came to the market last year.

Demand remained very strong throughout the year, driven in many cases by farmers, with ready money, seeking to replace land sold to developers as rural towns and villages continued their growth in the booming economic climate. The survey reveals that the past 12 months saw a large increase in the number of bigger farms offered for sale. It also found that, across the country, land averaged out at €19,465 an acre, compared to a price of €15,282 per acre the previous year.

John Dawson, president of the IAVI, which has more than 2,000 members, said the buoyancy experienced in 2006 in agricultural land prices should continue in 2007.

“This is helped by a lot of factors, including the number of farmers, who wish to remain in farming and have the means, seeking to replace land sold to developers or who have had agricultural land compulsory-purchased by the State for new roads and motorways.

“Gross farm income should also increase this year as grain stocks worldwide are at an all-time low, and grain in intervention in Europe is almost at an end.

“Farmers should see increases in grains prices of between 15% and 20%, and the outlook for livestock looks positive also,” he said.

In any given year, 0.1% of land changes hands in the country, and this includes family farm transfers.