How have land prices been in 2016?

Land prices declined gradually in 2016. The first six months proved challenging, with prices down 2.7% on 2015. This differs notably from the 1.6% growth in prices in 2015.

What factors drove the land market in 2016?

Uncertainty among farmers regarding income volatility, buying capacity, Brexit and a weakening sterling this year are among the main factors which are perhaps hindering farmers’ plans to purchase land.

What was the average price of land in Ireland in 2016?

According to Sherry FitzGerald research, the average land price for 2016 was €9,550 per acre.

Is there a regional variation to land prices?

Regional variations persist. All regions of the country witnessed downward pressure, with the exception of the midlands and Dublin, where the average price per acre remained stable year on year. The southwest saw the largest decline in land values, with prices down 2.1% year on year.

Was there more land offered for sale in 2016?

It would seem that there are a higher number of sales in 2016 in comparison to 2015.

Are farmers still the main buyers of land?

Farmers are still the main players but to a lesser extent, possibly holding off for improvements in the price of produce and more reassurance with regard to wider global economic events. The equestrian buyer has also been quite strong this year as land prices have been at favourable levels for purchasers.

Has the devaluation in sterling seen less UK buyers in the market?

The devaluation of sterling reduced the number of buyers from the UK and Northern Ireland. The currency change has been in their favour for a number of years and was one of the main reasons they invested in Ireland.

Is the access to funding still an issue for farmers buying land?

Yes, funding is still an issue for farmers. The banks are still slightly reluctant to lend to farmers as their income has been volatile.

What is your outlook for the Irish land market for next year?

It looks like farmers will be more confident in 2017 as incomes stabilise, particularly for dairy farmers as milk prices improve. This in turn may result in more farmers purchasing land. Budget 2017 was also a favourable one for farmers. In particular, the changes made to the income averaging scheme should help address some of the issues of income volatility for farmers as they will be allowed an “opt out” tax year.