Welcome to the 2016 Irish Farmers Journal Land Price Report. This publication marks our 10th anniversary since its inception back in the dizzy heights of 2007. The changes that have taken place over the past 10 years have been incredible, not just for the agricultural land market but also for the economy, the Irish people and the country.

Just to jog your memory, we have put together a special 10-year report on the land market since the peak of 2006. When we first started compiling this publication, land was easily making in excess of €20,000/acre. Back then, auction rooms were packed, bidding was brisk and the success rate was high.

Little did we know that within two years, the price of land would halve. The announcement of a global financial crisis in 2008 triggered worldwide panic. The economy went into recession, confidence collapsed and debt levels soared. Agricultural land was not immune. By 2009, the average price of land had plummeted to €10,200/acre.

Our review (pages 6 to 14) takes you on a comprehensive trip down memory lane, highlighting some of top sales for each year and the national average price paid for land.

Land prices stable

Turning to 2016, the Irish Farmers Journal Land Price Report exclusively reveals that average land values fell by 1.6% last year – down from €8,914/acre in 2015 to €8,771/acre in 2016. This is the second year in a row that the national average has fallen – it fell by 9.9% in 2015, bringing the total fall to 11.5% over the past two years.

This is also the seventh year in a row that the national average has hovered below €10,000/acre. Since 2010, average prices have ranged from €8,700/acre to €9,900/acre. Any ground gained one year was completely diminished the following year by a price drop. This has generated gentle waves of peaks and trough over the past seven years.

Contrary to initial estimates, the supply of land to the market was only slightly down on 2015. A total of 73,778 acres were offered for sale last year – down from 74,629 acres in 2015, representing a 1.1% decrease.

But in the main, the land market remains steady. Despite the challenges within the farming sector, there is still a solid appetite for land from farmers. While a lot of land remained unsold in 2016, almost 34,000 acres did successfully sell last year, which clearly indicates that plenty of deals are getting across the line, albeit at a slower pace.

In our Northern Ireland analysis on pages 74-78, Tom Morrow reports that prices are up in five counties, the only exception being Fermanagh, where land values have fallen by 4.5%. Overall, the NI market is buoyant with a 8% increase recorded, bringing the 2016 national average to £9,815/ac.

Acknowledgement

Each year we endeavour to gather as much information as possible in a bid to make our publication credible and accurate. For the past 10 years, we have relied on the willingness of agents all over the country to provide us with sales results, many of which are sensitive in nature. On a personal level, I would like to sincerely thank all those whom I contacted over the past decade. Your willingness to help me by disclosing private information is hugely appreciated. Your assistance has significantly contributed to the credibility of our product for the past 10 years.

I would also like to acknowledge the critical role of Eleanor McBennett and Andy Doyle who have assisted me from the very beginning. Eleanor gathers information each week, inputting it into our comprehensive land database. Andy assists me with the vital job of analysing the data, ensuring that our figures tally at the end.

A special word of appreciation to Tom Morrow, who has researched and compiled the NI analysis since 2010.

And a final word of appreciation to Joanne Fox and Lorcan Allen, both of whom stood in for me while I was on maternity leave for the 2012 and 2014 Land Reports, respectively. Many thanks to both of you for undertaking such a tremendous job of work.