Slight drop in farmland prices of just 1.9%
In their national land price survey the agency found a decline across the country from the very high levels of 2006. The national average price for farmland was €20,367 per acre in 2007, compared to €20,782 in 2006, a drop of just 1.9%.
In the Dublin, Kildare and Wicklow regions, which were analysed separately, the average price fell to €30,543 per acre last year from €34,959 per acre in 2006. This was a more pronounced drop, of €4,416 per acre, or 12%. In the south-west the average price paid for farmland was €19,946 per acre, down from the €21,936 per acre average of 2006 — based on 29 sales in counties Cork, Tipperary, Kerry and Limerick. However, they averaged €26,000 per acre in the 20 to 49 acre category, a significant increase from the previous year’s €17,887 per acre level.
Farms in the 50 to 99 acre category also registered a price increase, with an average €26,933 paid per acre, compared to €17,025 in 2006. But larger farm sales — including some big hill farms — pulled back the price average. The 100 to 199 acres category showed an average price of €18,236 per acre, well down on 2006 levels of €26,277 per acre.
In the 200-acres plus bracket, the average price paid was €15,191 per acre, down from €29,867 per acre in 2006. Again, relatively low priced hill land was a factor.
It was the 15th agricultural land price survey commissioned by the Irish office of Knight Frank, specialists in agricultural land, stud farms, estates and country house sales. Knight Frank partner and Head of Ireland Residential, Robert Ganly, stated that the overall decrease in values of about 2% was a realistic result.
“It was interesting to note that the greatest decrease was in the Leinster area. This reduction is a result of a slowdown in the development land market and less new buyers coming into the market place.”
However, he feels the overall prospects for 2008 are good. Affordability with the rise in farmer income will encourage more farmers back into the market.
“There was a welcome rise in farm incomes in 2007, and those farmers who sold land for development, road building, etc, in recent years will continue to be keen to buy other land to farm in its place,” he said.
