Milk quota entices bidders for holding
One went to auction last Friday, but didn’t sell until after bidding had finished.
The 53 acre holding came with a milk quota of 27,410 gallons, and that’s what most of the bidders were after, says auctioneer Henry O’Leary of Property Partners Henry O’Leary.
The attendance were strictly farmers, he said, and most were there for the milk quota, as there were no takers when the farm was offered as a pure land sale.
The property was then offered in lots, and made up to €585,000, well below the guide price of €650,000, and it was withdrawn.
It was sold outside the hall for €665,000 and everyone was happy, says Mr O’Leary.
Two bidders had taken the property to €585,000, and they purchased both lots.
Lot one, 24.34 acres with 12,505 gallons of milk quota, made €330,000; and lot two, 29 acres in one field with 14,905 gallons, made €335,000.
The farm came without Single Farm Payment entitlements, said Mr O’Leary, who added that bidding was concentrated among farmers because the land was “sterilised”.
The average per acre price was €12,500 and, according to Mr O’Leary, the price per acre without quota would be in the region of €11,5000 per acre. The purchasers were both neighbouring farmers.
