There is no question that demand for leasing land is growing and a recent auction for leased land in Laois demonstrated how lucrative this can be for the lessor.

In the last two weeks, 190 acres of high-quality ground in prime agricultural territory in Laois were auctioned to lease.

The holding was auctioned in three lots and in the entire. The result was very impressive. The three separate lots made an average of just under €274/acre. Crunching the numbers for 190 acres, this totals almost €52,000 per year, or over €520,000 over the 10-year period.

The auction took place at Ballycomey House, Castlecomer, Co Kilkenny.

Demand

Demand for the parcels was evident from the beginning. According to the auctioneer handling the sale, Joseph Coogan, competition for each lot and the entire was high. Three bidders bid on the entire, with four bidders seeking each individual lot.

The auction itself took over an hour, with a fiercely contested bidding war for each lot. Coogan firstly offered the entire, before moving onto the lots and back to the entire again. It is believed that the highest price on the entire 190 acres was €251/acre, offered by a dairy farmer.

What makes this sale even more impressive, is that the land was without entitlements or farm buildings.

The land

The property, formerly a dairy farm, is located in two separate areas of Co Laois and is was understood to be originally offered for a seven-year term. The guide on the lease was €185/acre, excluding the additional costs of farm buildings, prior to auction.

Lot one

The first lot is situated in the townland of Ashfield. Comprising 112 acres, this holdings is the largest lot by some distance and has the most comprehensive package. Laid out all in one block, the acreage is divided into circa 20 paddocks, according to Coogan. Presented and maintained well, the land here is of high quality.

An internal roadway links up this holding with the main yard and it is well fenced. This particular holding made €266/acre and was divided between a drystock and dairy farmer.

Lot two

The second lot is in close proximity to lot one. Situated with an address of Ballinagall, the 52 acres here are again of good grazing quality. With the additional plus of road frontage on to main Carlow-Portlaoise road, the parcel contains a good water supply and cattle crush for handling livestock. Lot number two was leased under the hammer at €275/acre to a dairy farmer.

Lot three

Lot three is a much smaller package, located circa 5km from lots one and two. Similarly, this lot is good grazing ground and is kitted out with a cattle crush, water supply and a good fencing network. This parcel made €280/acre to a sheep farmer.

The average price of just under €274/acre is well above the national average of €196/acre. However, prices such as these are becoming more frequent.

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