Galway and Mayo are two of the largest counties in Ireland and both have a strong farming tradition, with an emphasis on beef and sheep production. Farmers in the west generally have to contend with more difficult weather conditions than the rest of the country, while also working off less productive land.

The land markets in Galway and Mayo are very interesting in that, given the size of both counties, very little land is offered for sale each year. Mayo is particularly bad for the supply of land offered for sale, with just 2,096 acres brought to the market in 2014, representing just 0.16% of the total land area in the county.

Just 28 farms were offered for sale in Mayo in 2014, with 11 transactions completed.

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The average price paid for land in Mayo in 2014 stood at €5,715/acre – a 10% increase on the 2013 average of €5,145/acre.

Bad weather

Land prices in Mayo decreased in 2012 and 2013, largely due to some of the appalling weather experienced over the last number of years, which left many farmers battling against fodder shortages, as opposed to buying land.

The year 2014 proved to be a record one for grass growth in Ireland as the country experienced a good summer and very mild weather right up to December. Although beef prices were well back in 2014, sheep prices were steady, which, coupled with reduced input costs from less meal fed to stock, would have given many farmers a boost, allowing them the flexibility to purchase land if necessary.

The predominant type of farm sold in Mayo is generally small and less than 40 acres in size.

In Galway, the average price of land remained relatively steady in 2014 at €6,650/acre – a marginal decline of 2.6% from 2013. Similar to Mayo, the steady sheep trade last year helped offset the fall in beef prices for farmers and underpinned a solid land market in Galway. Over a five-year period, land prices in Galway have remained very steady year-on-year, which is positive for farmers.

The supply of land for sale in Galway is much higher than in Mayo, with 4,502 acres offered for sale in 2014. However, this still only represents 0.31% of the total land area in Galway.

Just like Mayo, Galway is a county where the supply of land is generally confined to smaller parcels. Of the 114 properties offered for sale throughout 2014, 80 farms were 40 acres or smaller in size, while only seven were greater than 100 acres in size.

There were a number of notable sales in Galway during 2014. The impressive Tulira Castle in Ardrahan, which comprises 250 acres of arable land and forestry, was sold in a private deal, while Derryhiney Farm outside Portumna, a sizeable tillage and grassland farm extending to 340 acres which originally belonged to former IFA president Rickard Deasy, was sold at public auction for €2.6m or €7,647/acre.