The difference between the price paid for dairy and tillage land has been growing since 2023, data from the Teagasc national farm survey 2025 shows.
In 2025, there was a decline in the average rental price paid per hectare by tillage farms at €510 compared with €535 in 2024.
On the other hand, dairy farms paid more for rented land on average in 2025 at €615 per hectare, an increase on €568 in 2024.
Previously, in the period from 2020 to 2023, this gap had been closing due to limited supply of rental land. However, it began to widen from 2023, with a continuous drop in tillage land rental prices and an increase in dairy land rental prices.
The data from the survey confirms that those dairy farms renting in land are typically larger than average, with the average farm size standing at 74 hectares in 2025.
Almost eight in 10 dairy farmers are renting in some land and that proportion has stabilised in recent years, Teagasc said.
Tillage
The proportion of tillage farmers renting in land has decreased in 2025 compared with 2024.
2024 was a challenging year on tillage farms and this may have influenced decision making around land rental in 2025, as factors such as year-on-year price and weather volatility can greatly affect the demand for rental area, the report details.
Similarly, the lack of supply and potential competition for rental land may also be a source of difficulty for these farms.
Additionally, the purchase of previously rented land will also be a consideration in whether to continue to rent land.