The average price paid for non-residential agricultural holdings is set to rise another 6%, according to the results of a report conducted by the Society of Chartered Surveyors Ireland (SCSI) and Teagasc.

The Agricultural Land Market Review and Outlook Report 2022 found that the average price paid for good-quality land rose by 17% nationally, while the prices paid for poorer-quality offerings dropped by an average of 10%.

Good-quality land reached €9,381 to €10,962 per acre last year, with Co Kildare posting the highest average price paid for farmland at €15,350 per acre.

The price rise for good-quality land was strongest in Munster at 14%, followed by Leinster at 12% and, finally, by Connacht-Ulster at 5%.

Cork was the only other county whose average good-quality land passed €15,000, with good land making an average of €15,071 per acre, Teagasc and SCSI reported.

No county outside of Leinster had made the top eight counties in 2020.

“In our survey, 53% of SCSI agents reported an increase in the volume of land sold when compared to the previous year while 24% reported that the volume of land sold remained the same,” stated SCSI’s James Lee when releasing the report.

“In addition, two-thirds of valuers reported an increase in the percentage of valuation requests for the transfer of land. This is up from 43% in 2020.

“These are positive trends and show confidence in the market from sellers and buyers,” he concluded.

Poorer-quality holdings

Poor-quality land came in at an average of €5,308 nationally, down about 10% on 2020.

Co Leitrim saw the lowest prices paid for land last year, with an average of €5,025 paid for its better-quality ground and €2,760 paid for lower-quality lots.

Poorer land was more expensive in Co Louth than other counties, according to the report.

Renting ground

Overall, the price of renting land is set to rise approximately 10% in 2022, the report went on.

Land in Leinster will increase by 12% in price to rent, while parcels in Munster, Connacht and Ulster are predicted to rise by 9%.

Last year, land rented in Leinster for silage, grazing, potatoes and tillage rose by between 18% and 29%.

“2022 is likely to be remembered for significant increases in commodity prices and general inflation,” said Teagasc economist Jason Loughrey.

“While the news on the costs side is quite negative, from the perspective of farmers there are positive developments on the output side, with significantly higher grain, dairy and meat prices now likely in 2022 than would have been forecast even two months,” he added.