Farmers are paying more for long-term leases in 2018 than they were last year.

The average cost of a lease in Ireland this year is €211/ac, with prices up €15/ac from 2017 ahead of the Basic Payment Scheme application deadline of 15 May.

An Irish Farmers Journal survey covering 155 leases over 6,600ac found dairy and tillage farmers were paying the highest prices. Dairy farmers paid 10% more than last year on average for leases, while tillage farmers paid 17% more.

Dairy leases vary significantly around the country, with high prices quoted in counties with a strong dairy presence, particularly Tipperary and Cork.

The average price paid by dairy farmers in these two counties was €267/ac.

Almost a quarter of these leases were €300/ac or more, with 55% paying €250/ac or more.

Outside of Kilkenny, Cork and Tipperary, dairy leases averaged €184/ac.

The average beef lease jumped from €161/ac in 2017 to €174/ac this year. Prices vary significantly depending on quality, location and the influence of interested neighbouring farmers.

The study covered over 700ac of tillage leases and found the average lease to be €260/ac, up from almost €225/ac 12 months earlier.

Munster had the highest regional average, at €240/ac per lease. Excluding Cork and Tipperary, the average was significantly lower at €145/ac in the province.

Leinster prices are up to €225/ac from €205/ac in 2017. Connacht prices jumped to an average of €165/ac, up from €156/ac last year. This was driven by higher prices in Roscommon and Galway. The average in Mayo, Leitrim and Sligo was €133/ac.

Ulster had the lowest price for leased land, with an average of €157/ac.

Conacre

In a separate survey of conacre, the average 11-month rent cost €186/ac. Tillage was the highest at €290/ac, dairy was at €211/ac and beef was at €155/ac.

The opinion among auctioneers nationwide is that land for leasing is generally becoming scarce and demand for ground is high.

Agents have noted that land supply is tight because it is already tied up in long-term leases and many agreements are being done privately between farmers.

In the west and midlands, it has been noted that forestry has taken land out of the market for leasing.

There is also evidence that farmers are willing to travel across county borders for parcels of land, increasing competition.

Some areas in the west that are predominantly beef are seeing little or no increase in costs.