The land market has remained buoyant into the first three months of the year, with the average price paid for farmland rising by 3.2% since 1 January to reach approximately €10,050 an acre, according to a report on land prices released by Sherry Fitzgerald.

This price bump adds to previous months’ land purchase price increases to represent an average increase of 8.4% nationally.

At the end of March, land prices were highest in the mid-east at approximately €11,550 per acre, the report found.

Parcels in the border region recorded annual price growth up to the end of March of 16%, with the southeast and the southwest posting average price increases of 12.3% and 9.5% respectively.

Tilage ground

Tillage ground finished the quarter with an average price paid per acre of €11,960 per acre, representing growth of 7.1%, while good-quality grassland farmland grew in cost by 9.5% in price in the 12 months up until March to stand at an average of €11,350 an acre.

More marginal-quality grassland recorded an average sales figure of €6,850 per acre, up 8.9% in a year.

Market activity

Associate director of Sherry FitzGerald Country Homes, Farms and Estates Philip Guckian commented that the figures reflected healthy levels of market activity, even though the land market is overshadowed by increasing input costs for farmers.

“Although it is still early in the year, we are seeing healthy levels of activity in the market. We are also seeing a lot more farms come to market as the weather has improved,” said Guckian.

“However, there is real concern surrounding risings costs, both because of general inflation as well as fallout from the war in Ukraine.

“Farmers are facing cost increases for fertilisers, feed, and other agricultural products. These increased costs may cause potential buyers to stall if they continue to rise,” he concluded after the report’s release.