Changes made to the tax laws in 2016 have fuelled a greater level of demand for leasing land.

This has been reflected in the prices across the country since 2017. From speaking to auctioneers around Ireland, it seems naked or bare land (land without entitlements attached) is the most sought after in early 2019.

The average price of leasing land in 2017 was €196/ac, which increased to over €200/ac in 2018.

While there was a major price disparity between the regions, the demand still remained high.

The once extraordinary figure of €300/ac has been seen with greater frequency. But is this strong demand continuing into 2019?

Gerry Coffey

Gerry Coffey Auctioneers, Roscommon, Mayo and Galway

“If you are trying to lease land with entitlements around here, it is difficult. Certainly, last year was easier. A lot of young farmers that have entitlements from the National Reserve that may have lost land are now looking to lease bare land to put those entitlements on. In terms of the outlook for farmers, it is not great with the uncertainty around Brexit and commodity prices.”

Padraic Murtagh

James L Murtagh, North and mid-Leinster

“The demand for leasing land is strong in this area at the moment. There seems to be a greater demand for naked land as opposed to land with entitlements. Some people seem nervous to lease their land because of rumours that this year would be a reference year with CAP. In terms of who is leasing, it seems to be farmers from across the board. Tillage farmers are setting a level of €200/ac and they don’t seem to be going above that. Prices would be anything from €180/ac to €280/ac for naked land and we are seeing people come from as far away as Tipperary and Donegal for land.”

John Earley

Property Partners Earley, Roscommon

“There seems to be a slight hesitancy in the market for leasing land at the moment. It is the scarcity of land that is keeping the market up. Between 70%-80% of leasing land is tied up in long-term leases already and that is having an impact. Farmers and banks seem slightly more conservative this year. The market is staggered with the uncertainty around Brexit and commodity prices but I believe this will even itself out. We have to take the longer term view. New opportunities will arise. In terms of prices, they are averaging about €150/ac. We are not seeing too many mad prices around here yet this year.”

Clive Kavanagh

Jordan Town and Country Estates, Mid-Leinster

“There is a good demand for leasing land. A lot of people seem to be looking for it. Most of the land, however, is tied up in existing leases and established relationships so very little new land has come up for lease. Tillage farmers would be paying anything up to €200/ac. Grassland lease depends on who is neighbouring it most of the time. Dairy farmers are pushing the trade and strong prices can be seen for longer term leases. People are travelling for land within reason. Some farmers are looking for bigger outfarms for heifer rearing, etc.”

Anne Carton

PN O’Gorman, Wexford, Kilkenny, Carlow

“Demand for leasing has been good. We are at the end of it now for the season but we would be seeing steady to strong prices. There is certainly bite from young farmers, especially those who may be from good farming families and want to go out on their own. The most popular size of farms for lease is 30 to 60 acres and 10-year leases are the most sought after. However, it is dependent on so many factors. Tillage farmers are certainly looking for bigger farms. In terms of price, anywhere from €200/ac to €270/ac would be the average. Change to tax regulation around leasing has made a massive difference to demand.”

Ed Donohoe

  • Donohoe Properties, Kilkenny, Carlow, Tipperary

    • “Demand is still very strong in these parts but supply around Tipperary, Kilkenny and Carlow is very tight. When land does come on to the market for leasing, it tends to make a strong price. People want naked land to draw down entitlements and certainly, if people lost land during the year, they are eager for naked ground. I would have had numerous enquiries for this during the spring. There is an appetite for people to travel for land, especially for big blocks. In terms of prices new leases are making anywhere from €250/ac to €320/ac, but there is high-quality land and very progressive farmers here so this wouldn’t reflect the national average.”