Falling land rental prices are a harsh reality

WHAT is your land worth? That depends on who wants it and why. Teagasc warned earlier this week that land rental prices were set for a hard landing and in some cases could go below €50 per acre per year.

The agency predicts painful lessons in the laws of supply and demand for landowners who rent or lease out their holdings.

The reason? Tenants don’t need the land anymore. And like any other unwanted item, its price can plummet. Changes in EU payment practices broke the link between payments and production. Decoupling means many tillage farmers can hold onto their existing payment levels even if they decide to vacate up to 50% of the area they previously farmed.