Conacre market kicks off - verdict is mixed

By Shirley Busteed

In a nutshell, the picture is fuzzy. For most auctioneers, it's too early to comment on the forthcoming season. In one sense, activity is similar to this time last year with minimal to no movement in many areas - both farmers and landowners are sitting on the fence and no one is willing to commit. Having said that, the level of inquiries appears stronger this autumn, even though the number of completed deals remain thin on the ground.

Already auctioneers are getting calls for grazing land - farmers appear keen to get their name on the books for next spring. A number of producers last year sat too long on the fence, resulting in a last minute rush prior to the submission date for area aid forms.

It remains to be seen if more producers will consider consolidating their holdings and stack entitlements. The mixed harvest and the uncertain future for sugar beet don't auger well for conacre tillage ground.

Last season, tillage land without entitlements suffered the biggest blow. A number of landowners subsequently reseeded their land in the hope of a better market for grazing ground. As it turned out, the market for grassland was just as strong as previous years.

Presently, the amount of land available for letting is minimal in some parts of the country. Many of the current 11-month contracts will not mature until later this year.

Bearing in mind that it's early days yet, the response from various auctioneers depends on their location. Below are some of the comments and observations made from speaking with auctioneers around the country.

The future conacre market will be tiered - land without entitlements, land with entitlements, good vs average quality parcels. It appears that quality will become even more critical when determining future conacre deals. Average quality land without entitlements is anticipated to take the biggest blow. Farmers are saying they want it at a reduced rate but at the same time they are not fully indicating that they are going to walk away from it - Westmeath auctioneer.

There seems to be active interest for more long-term leases as opposed to an 11-month conacre contract. I recently let a 300-acre grassland farm for €100/acre over a five-year term. There is certainly more inquiries than land available to match the interest at the moment - South Wicklow auctioneer.

Conacre is almost a thing of the past. At one time it constituted a significant volume of my business. The harvest was disappointing for many farmers this year. I haven't received any inquiries from farmers looking for land, or from landowners offering to let/lease their farm. There is still a lot of land tied up in long-term leases and in REPS - less is available - East Cork auctioneer.

Plenty of inquiries are coming in but everyone is sitting on the fence - similar to last year. I haven't completed one deal. Landowners don't know what they should be asking and farmers don't know what they should be offering. A significant amount of traditional cereal ground has been reseeded - this could affect the price of grazing ground in the spring; it all depends on demand - North Wexford auctioneer.

Not a whole lot of movement yet. There is good interest from farmers keen to take land for oil-seed rape this year but it's hard to source. Inquiries are certainly more numerous than last this time last year - Meath auctioneer.

There is strong demand for good quality large blocks of land of 150 to 200 acres plus. The demand is not significantly better than last year, but certainly is still no worse. There is more pressure towards a downward price trend. Having said that, farmers who don't want to forfeit conacre ground, are having to pay between €95 to €105/acre (without entitlements) at the moment - new outside demand is entering the equation, which is putting pressure on local customers. Around €85/acre is being paid for less superior plots. Surprisingly, some potato farmers are ringing now, just to have their name on the books - some farmers left it too late to secure land last year. Many tillage farmers are looking for large fields of 25-30-acres plus. Presently, there is a good demand from sheep farmers for aftergrass. This is making from €35 to €50/acre up until the 17 March - North Kildare auctioneer.

Few parcels on the books but there are a lot of inquiries from farmers looking to take land. Some farmers left it too late last year. No decisions are being made, but I presume farmers will take the same parcels again this year. It's a good sign to see inquiries coming in. The next few weeks should witness some movement. I think land for beet will suffer a big blow around here, particularly if the reported €20/tonne transport fee to Mallow materialises - South Kildare auctioneer.

There is already exceptional interest from farmers looking for grazing ground. No land is available on the market yet. I expect a significant price drop for tillage land again this year, especially in light of the bleak outlook for beet - corn isn't too hectic either. Having said that, a couple of serious tillage operators have said they will take the same parcels again and more, if they can get it. €80 to €100/acre was the general run last year for tillage land. Things don't really kick off here until mid-January. A lot of cereal ground has reverted to grassland - South Tipperary auctioneer.