Trends similar to last year in the 2006 conacre market

By Shirley Busteed

Farmers around the country have less than three months to deliberate whether to take conacre for the coming season. Submission date for the 2006 SFP form looks set for the end of April - all deals should be concluded by then. The general consensus is that both the demand and price for grazing ground is just as good as last year. In contrast, depending who you talk to, tillage ground is slow to move in some parts of the country but it appears that sizeable blocks of 100-150 acres are sought after by a number of the larger operators.

Sean Doyle, Maynooth, said that the recent dry spell of weather has put a sprint in some farmers' steps with the result that deals are being done at least three weeks earlier when compared to last year. Demand is strong for grassland in the area with prices ranging from €120 to €140/acre. Any good quality well-fenced parcel is readily snapped up, according to Sean. Tillage land on the other hand, is generally making from €100 to €120 with slightly more given for choice lots. He added that a number of tillage farmers are keen to source sizeable 100 to 150 blocks.

Moving to the midlands, there is strong interest for long-term lease agreements for grazing ground but the amount of new land being offered for letting is minimal, according to John Dawson, Tullow. The market for grassland is just as good as last year with prices ranging from €150 to €205/acre for top quality parcels.

On the tillage front, many beet growers are disillusioned. John commented that the cessation of the industry in Carlow is a tremendous loss to the area. In his view, around 20% of tillage land has already been reseeded in the region. Having said that, demand is reasonably good with €100 to €125/acre given for the coming season.

Further south, Denis Howell from Warren Estates, Gorey, reported that €130 to €150/acre is the general run for grazing land - and if anything, could be a shade up on last year. Tillage ground is ranging from €60 to €100/acre with good interest in larger blocks. Denis added that farmers who normally take 20 to 30 acres each year for tillage, are not expressing much interest so far this season.

Paul Murtagh, Real Estate Alliance, Mullingar, reported that inquiries for grazing ground are beginning to heighten from the north-west. Large 100-acre blocks and long-term leases are being sought as farmers from Sligo, Leitrim and Donegal, look to Longford and Westmeath to take ground. Hence, any holding with a cattle crush and pen is being snapped up. The price is generally settling around €130/acre. Staying in Westmeath, Denis O'Roarke, Moate, commented that he has a list of farmers' names, who are keen to acquire long-term leases for grazing. Prices range from €80 to €130/acre.

Thomas Potterton, Trim, reported good interest in large blocks of tillage ground which is making from €80 to €130/acre. Grazing ground is fetching around €130/acre.

Joe Coogan, Castlecomer, handled the following public lettings (none had entitlements) this week.

30 acres (20 in tillage; 10 in grass) at Rathhealy, Tulloroan, was let for five years for €120/acre.

9.5 acres in grass at Kilcruise, Woolshill, Co Laois, made €132/acre until 1 November '06.

16 acres of grass near Woolshill, made €117/acre until 1 Nov '06.

28.5 acres (20 in grass; 8.5 in tillage) near Ballylickmoyler, was let for five years for €213/acre.

34.5 acres of grass at Corbettstown, Ballyfoyle, Co Kilkenny, made €192/acre until 1 Nov '06.

14 acres (grass) at Moneenroe, made €105/acre.

12.5 acres at Railyard, Castlecomer, made €110/acre until 1 August '06 for meadowing/sheep only.

To date, there is minimal activity with regard to leasing entitlements with land, so much so, that's it's difficult to nail down any price trend.