2021 land rent and sale price rises predicted

Demand for good quality ground remains strong 

Dairy farmers are driving the land market in Munster. File Picture. 

Land prices are expected to rise 4% this year, according to the latest agricultural land market review and outlook report by the Society of Chartered Surveyors Ireland and Teagasc.

Demand for good quality farmland remains strong, and land rental price increases are predicted of 8% for Leinster, 5% for Munster, and 6% for Connacht.

In Munster, where dairy farmers drive the market, average 2020 prices ranged from €11,900 per acre in Co Tipperary to €9,000 in Co Clare. Prices for poor-quality land averaged from €6,500 in Co Waterford to €4,700 in Co Clare.

National average non-residential prices ranged from €5,900 per acre to €9,381 for good quality land last year.

The SCSI and Teagasc said the most expensive land was in Co Kildare where good quality holdings averaged €13,600 per acre; the cheapest was in Co Leitrim where poor quality land averaged €3,250.

Covid-19 public health restrictions have led to deferral of land sales.

Land values have been underpinned by rising farm incomes, up 6% last year on average.

The SCSI and Teagasc said Leinster had the highest prices in 2020 because of the higher quality of land in the province, and the high demand for it.

For good quality land sales, under 50 acres, average prices in the province ranged from €13,600 in Kildare to €7,900 in Longford.

Prices for poor quality ground ranged from €8,300 in Kildare to €5,500 in Longford.

In Connacht/Ulster, average prices for good land ranged from €9,500 in Donegal to €6,500 in Monaghan, and from €5,750 in Monaghan to €3,250 in Leitrim for poorer land.

Teagasc economist Dr Jason Loughrey said Covid-19 may have impacted the volume of sales but had little impact on agricultural commodity prices last year, which supported farm incomes and land values at a time of great uncertainty.

“Overall it is estimated that the average farm income in Ireland increased by 6% in 2020, and this year we forecast an increase of a further 3%.”