There has been a marked improvement in the agricultural land market over the past two years. Supply has increased, auction rooms are generally packed, bidders are active and sales are getting across the line. The appetite to buy land is more apparent, confidence levels are blossoming and the mood is generally upbeat.

After two years of price stabilisation in 2010 and 2011, the national values indicated recovery in 2012 when a 14.3% increase was recorded across the 26 counties to bring the average to €9,954/acre. This was the first time in five years, since 2007, that the average price of an acre of land had risen year-on-year. Given the buoyancy in the market, the expectancy that average values would break the €10,000/acre barrier in 2013 was high. However, this hasn’t happened. In fact, according to the latest findings from the Irish Farmers Journal Agricultural Land Price Report, the average price paid for land in 2013 fell by over €500/acre to €9,400/acre.

Not a major fall by any means, but still noteworthy. In general terms, the price of land across the country is steady. Values fell in 15 counties and increased in nine counties, but most of these percentage increases or decreases were less than 10%.

Supply, on the other hand, has recovered to pre-recession levels with almost 75,000 acres offered for sale in 2013. To put it into context, land supply plummeted to 41,300 acres in 2010 following the recession. Since then, the supply of land has shown significant increases year-on-year.

2013 also featured a healthy level of activity with a significant number of sales crossing the line, both in the auction room and by private treaty. Cash buyers were prominent and there was sight of a new type of buyer – the emigrant who had spent the last five years working and saving abroad but now wants to return home and acquire 30 to 50 acres.

Many of the factors that influenced the sale of land last year will remain in 2014. Agents all over the country cannot overstate the importance of having at least one to two active farmers in the locality, preferably neighbouring or adjoining farmers. Without these guys, the sale of a property can be slow and a price cut might be inevitable.

Access to finance is still an issue in many regions. Many of those who have to resort to borrowing continue to struggle with stringent lending requirements and protracted waiting periods before a loan is finally drawn down. This can lead to a deal falling through.

Farmers remain the primary buyers of agricultural land. Hence, anything that might affect their purchasing ability, will influence the price. Factors such as bad weather, falling commodity prices and rising costs can individually (or together) have a detrimental impact on the demand and ultimately, the value of land.

The scenario in Northern Ireland is similar to the Republic. Our Northern correspondent, Tom Morrow, reports that land prices across the north in 2013 fell slightly in some regions but remained steady. Supply, on the other hand increased sharply from 4,900 acres sold in 2012 to 8,236 acres sold in 2013, reflecting a higher level of activity.

Acknowledgement

This is the seventh year of the Irish Farmers Journal Agricultural Land Price Report. This report gives a comprehensive and credible breakdown of land sales across the country, north and south. But it couldn’t happen without the assistance of so many auctioneers and estate agents around the country who willingly disclose public and private results.

These results greatly contribute to the accuracy of our statistics and has allowed us to collate a record number (670) of completed transactions for 2013. On a personal level, I would like to express my sincere appreciation and gratitude for their generous assistance.

I would also like to acknowledge the wonderful help and support from Andy Doyle and Eleanor McBennett during the process of gathering and analysing data for this report.

Overview: Land prices steady but vulnerable - read more here

Eight tax planning actions for landowners - read more here

What is an acre? The history of land surveying - read more here

Laying down the law on rights of way - read more here

The basis for the land report: Our facts and figures - read more here

Carlow: Significant reduction in land offered for sale - read more here

Cavan: Smaller parcels dominate the market - read more here

Clare: Huge drop as price of land falls by 25.9% - read more here

Cork: Over 10,000 acres offered for sale - read more here

Donegal: Private treaty sales dominate - read more here

Dublin: Most expensive land in the country - read more here

Galway: Fall in price and market activity - read more here

Kerry: Amount of land on offer falls as average price rises - read more here

Kildare: Decrease in supply of land - read more here

Kilkenny: 56.7% jump in volume of land on market - read more here

Laois: Huge increase in amount of land on offer - read more here

Leitrim: Smaller parcels command most interest - read more here

Limerick: Supply of land up 90.6% - read more here

Longford: land values fall by 9% - read more here

Louth: 49.3% increase in values - read more here

Mayo: Supply of land up by 53.2% - read more here

Meath: A hive of activity as 101 farms are offered for sale - read more here

Monaghan: Market activity relatively steady - read more here

Offaly: Land values fall by 10% - read more here

Roscommon: Surge in supply of land on offer - read more here

Sligo: Very little land on offer - read more here

Tipperary: Values tumble by 26.1% - read more here

Waterford: 23.3% decrease in supply - read more here

Westmeath: 13.8% increase in average prices - read more here

Wexford: 50.4% increase in supply of land - read more here

Wicklow: Average price down 12.9% - read more here

Northern Ireland: A look at the agricultural land market in the North in 2013 - read more here

Northern Ireland: Profile of the market in the six northern counties - read more here