Land prices to rise 4% as Iran conflict hits farm incomes
The average national price for good quality agricultural land last year was €14,126, an increase of 7% on the previous year.
War in Iran and wider global tensions mean the price of farmland in Ireland is forecast to rise by 4% this year, a slower rate than in previous years, as higher costs impact farm incomes.
A joint report from the agri-food agency Teagasc and the Society of Chartered Surveyors Ireland (SCSI) describes an active and competitive market with prices underpinned by strong demand and a continued scarcity of available land.
The report found that the average national price for good quality agricultural land last year was €14,126, an increase of 7% on the previous year. The price for poor quality agricultural land was €6,963 per acre, an increase of 5% on the previous year. The most expensive land overall is in Wexford, where the average price of an acre of good quality land is €19,226. The least expensive land is in Leitrim, where the average price of an acre of poor quality land is €3,772.
While land prices are expected to continue on a steady upward trajectory, the outlook this year is more cautious than in recent years. Auctioneers and valuers say their caution reflects uncertainty over output prices, rising costs and broader economic and geopolitical uncertainties.
"The outlook for Irish agriculture in 2026 is significantly more challenging, with unfavourable weather conditions, rising input costs, softer output prices and increased uncertainty expected to place pressure on farm profitability," Teagasc economist, Dr Jason Loughrey, said.
"Disruptions to energy markets arising from the US-Israeli war with Iran have contributed to increases in fuel, fertiliser, machinery hire and other input costs, with knock-on implications for farm profitability.”
The report notes that cattle enterprises recorded exceptional performance last year, with finished cattle prices rising by 39% and weanling prices increasing by 70%. Dairy farm profitability also improved, supported by higher milk prices and increased production with only modest increases in production costs.
However, dairy margins are expected to decline substantially in 2026, as lower milk prices and higher fertiliser, fuel and feed costs reduce profitability relative to 2025. Overall, Irish dairy margins could be in excess of 50% lower compared to last year as a result of lower prices and higher costs. Beef sector incomes are expected to moderate, although prices are forecast to remain above long‑term averages.
The report notes that Munster remains one of the strongest agricultural regions for land prices, driven primarily by dairy farming, particularly in Cork, Tipperary and Limerick. Good quality land in the province attracts an average of €15,404 per acre, broadly similar to a year previously.
Dr Frank Harrington, Chair of the SCSI’s Rural Agency and Discipline Lead of Real Estate and Valuations at TU Dublin, says strong demand for agricultural land coupled with continued low supply is underpinning strong prices.
“According to the Central Statistics Office, the share of agricultural land, which transacts for sale annually is only around 0.5% of agricultural area. Not surprisingly therefore this report finds that succession and probate sales are among the most common sources of land coming to market. In a competitive market dairy farmers continue to be identified by agents as the most active buyer group in the agricultural land market, followed by dry stock farmers and tillage farmers.”
