A number of Irish farmers are understood to have expressed interest in a large tillage farm that is on the market in Poland and which has been advertised internationally.
The farm is 1,223ac or 495ha in size and is located 54km south of Gdansk. It is described by the auctioneers – UK-based Brown & Co – as very high-quality alluvial silt land.
It is currently growing winter and spring wheat, oilseed rape and sugar beet.
The farm also has grain, fertiliser and agri-chemical stores as well as a large grain drying setup. The farm received EU direct payments equivalent to €107,700 – at current exchange rates – in 2019.
The farm is being offered for sale with vacant possession for €8.87m with a further, separate sum to be negotiated for the farm buildings. A representative of the auctioneers said: “The buildings make up a small percentage of the overall value, but we expect them to have a separate and additional value to the land, given the specific investment that has been put into them.”
He said that the buyer will acquire 100% of the shares in a UK company, which in turn owns the Polish company that owns the land and buildings.
The auctioneers are also offering a sale and leaseback arrangement which may be of interest to non-farming investors. Under this arrangement, a sale value will be agreed for the farm and a lease contract then signed with an active farming tenant for a three- to five-year period. The lease rent will be set to give a circa 3% return, indexed to inflation.
Brown & Co can provide all the administrative support
“This will provide a good cash return to the investor which will be linked to inflation and the owner will also have exposure to the land market,” the representative said. “Brown & Co can provide all the administrative support, as we do for a number of clients over here, and manage the relationship with the tenant.”
As well as in Ireland, the farm has been advertised in the UK, Denmark, Germany and Poland. Brown & Co says that interest so far has been “surprisingly high”. The firm says it is attracting the interest of Irish farmers because there are already strong links between Irish farmers and Poland and because of the relative stability of the land market in Poland.