P/E ratio up to 90 for a suckler farm in Munster, 19 for dairy

For a suckler beef or sheep farmer, land (if considered as an economic asset), at current average prices, is prohibitively expensive.

Earnings per hectare are close to only one 90th of the price of land in Munster, according to the new figures from Teagasc’s National Farm Survey and Teagasc’s analysis of the agricultural land rental and sale market, in conjunction with the Society of Chartered Surveyors of Ireland.

To calculate this price to earnings ratio, divide the income per hectare of €263 on a suckler farm or €265 on a sheep farm into the €24,300 per hectare (€9,800 per acre) average 2014 non-residential land price in Munster (from the farmland rental and sale market analysis).