A number of factors affect the land market. The demand for land and the final sale are at the mercy of these factors with location, quality, commodity prices and neighbouring farmers, to name but a few.
For this reason, giving specifics on certain market trends can be difficult. However, there is one particular trend that continues to grow and that’s land for leasing, which dairy farmers are hungry for. I have spoken with numerous auctioneers throughout Ireland over the last number of weeks and the vast majority have noticed strong prices continuing on from 2017.
The grazing ground at Curraheen, Conna, Co Cork was described by agent Michael Barry as top class.
Average values varied across the country, but strong dairy areas saw the highest prices, with Tipperary, Waterford and Cork all paying big for leasing ground.
With this in mind, agent Michael Barry, of Dick Barry and Sons, has recently brought a super 150-acre farm onto the market for lease.
The farm
Located in Curraheen, Conna, Co Cork, the farm has a number of farm buildings. It is laid out in one block and presented in large paddocks, which are sub-divided to suit the farmer’s grazing system.
The perimeter hedging provides ample shelter for livestock and the fencing is top class. Electricity and water are supplied to the sheds and land.
According to Barry, a major selling point here is the quality. Almost all of the land has been reseeded over the course of the last five years, ensuring it is very productive.
“The stocking rate capability on this farm is second to none. It would carry as many cows as any farm in Ireland,” Barry explained.
A central roadway extends to the majority of the farm, which makes it very practical. In terms of buildings, there are a number of good-quality facilities. These include a five-column slatted house, a five-column cubicle house, a large open shed, a three-column feed shed, a calf house and slurry facilities. The farmyard is open and spacious and has ample access.
The catch
The main features of the farm – quality, the layout, the central roadway and its location – means it could be converted to a good dairy holding.
However, there is currently no parlour on the farm. The property is currently run as a beef farm.
“Part of the agreement is that a parlour will have to be constructed. The tenant and vendor will have to negotiate the terms of that and the cost will be reflected in the lease over the 10-year period”, Barry told Irish Country Living. “The owner is aware that allowances need to be made to the tenant for the cost of the parlour. We will be looking into all the options regarding this. There is nothing concrete as of yet.”
The lease
The lease is for 10 years. The guide is not set in stone because of the terms of constructing the parlour, however the auctioneer says leasing prices have been strong in the Conna, Midleton area in 2018.
According to the 2017 Land Report, the average price of leased land in Cork was between €220/ac to €240/ac, and ranged from lows of €80/ac to well above €320/ac.
The final settlement on this lease will be interesting, however the agent did say that the quality of the tenant is equally as important as the money paid.
Interest
Given the terms, the interest has been varied. Different farmers have quoted different requirements. Some dairy farmers wanted the land without having to build a parlour, while a number of tillage enquires have also been submitted. For this reason, the final details of the lease may take time to work out.
Having said that, the interest has been strong from farmers in Cork, Waterford, Tipperary and Limerick.
A number of factors affect the land market. The demand for land and the final sale are at the mercy of these factors with location, quality, commodity prices and neighbouring farmers, to name but a few.
For this reason, giving specifics on certain market trends can be difficult. However, there is one particular trend that continues to grow and that’s land for leasing, which dairy farmers are hungry for. I have spoken with numerous auctioneers throughout Ireland over the last number of weeks and the vast majority have noticed strong prices continuing on from 2017.
The grazing ground at Curraheen, Conna, Co Cork was described by agent Michael Barry as top class.
Average values varied across the country, but strong dairy areas saw the highest prices, with Tipperary, Waterford and Cork all paying big for leasing ground.
With this in mind, agent Michael Barry, of Dick Barry and Sons, has recently brought a super 150-acre farm onto the market for lease.
The farm
Located in Curraheen, Conna, Co Cork, the farm has a number of farm buildings. It is laid out in one block and presented in large paddocks, which are sub-divided to suit the farmer’s grazing system.
The perimeter hedging provides ample shelter for livestock and the fencing is top class. Electricity and water are supplied to the sheds and land.
According to Barry, a major selling point here is the quality. Almost all of the land has been reseeded over the course of the last five years, ensuring it is very productive.
“The stocking rate capability on this farm is second to none. It would carry as many cows as any farm in Ireland,” Barry explained.
A central roadway extends to the majority of the farm, which makes it very practical. In terms of buildings, there are a number of good-quality facilities. These include a five-column slatted house, a five-column cubicle house, a large open shed, a three-column feed shed, a calf house and slurry facilities. The farmyard is open and spacious and has ample access.
The catch
The main features of the farm – quality, the layout, the central roadway and its location – means it could be converted to a good dairy holding.
However, there is currently no parlour on the farm. The property is currently run as a beef farm.
“Part of the agreement is that a parlour will have to be constructed. The tenant and vendor will have to negotiate the terms of that and the cost will be reflected in the lease over the 10-year period”, Barry told Irish Country Living. “The owner is aware that allowances need to be made to the tenant for the cost of the parlour. We will be looking into all the options regarding this. There is nothing concrete as of yet.”
The lease
The lease is for 10 years. The guide is not set in stone because of the terms of constructing the parlour, however the auctioneer says leasing prices have been strong in the Conna, Midleton area in 2018.
According to the 2017 Land Report, the average price of leased land in Cork was between €220/ac to €240/ac, and ranged from lows of €80/ac to well above €320/ac.
The final settlement on this lease will be interesting, however the agent did say that the quality of the tenant is equally as important as the money paid.
Interest
Given the terms, the interest has been varied. Different farmers have quoted different requirements. Some dairy farmers wanted the land without having to build a parlour, while a number of tillage enquires have also been submitted. For this reason, the final details of the lease may take time to work out.
Having said that, the interest has been strong from farmers in Cork, Waterford, Tipperary and Limerick.
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