1 No neighbours

The first thing an auctioneer will ask when land is put on the market is “who is your neighbour?” Having interested farmers in the locality is the first step towards getting land sold. If there are two or more neighbouring landowners interested, strong prices can be seen. The biggest reason land does not sell is if there are no interested parties at all.

2 Unrealistic expectations

The expectation of the vendor is a crucial aspect of any sale. Having land in a high-quality area does not mean it is high-quality land itself. Similarly, just because higher prices are seen in close proximity to a previously sold holding does not mean that properties will make a similar price. Other factors need to be taken into consideration.

Recognising what factors do and do not suit a particular farm is important. In some cases, the guide price may be correct, but the vendor may not accept an offer. In any case, numerous land parcels did not sell in 2018 as expectations did not meet reality.

3 Brexit

In 2017, a number of agents mentioned Brexit in passing. In 2018, virtually all brought it up in some capacity. In suckler and beef areas, predominately around the midlands and across to the west of Ireland, Brexit seemed to have an effect in the form of uncertainty. This transferred to the land market in the form of reduced enquiries and demand for land parcels, agents said.

4 Finance

The fodder shortage of last winter and spring, combined with the drought in the summer, increased costs at farm level. Agents noted that banks were forced to reassess certain financial arrangements, in particular for dairy farmers. Finance also remained an issue for beef farmers in 2018. In the auction room, sales can be affected if farmers cannot access finance in time, or at all. It is, therefore, no surprise that the land market is still predominantly a cash market.

5 Commodity prices

Needless to say, poor commodity prices will no doubt affect land sales. A poor year for beef in 2018 reduced both profitability and sentiment. This was noted by virtually every auctioneer.

6 Sentiment

There was a definite correlation between sentiment and land sales last year. The feeling among farmers varied across Ireland. While dairy farmers had their challenges, sentiment improved towards the end of the year and land sales were strong. In suckler areas across the midlands and west, the sentiment was not so positive. Sales suffered as a result.

7 Quality

“Good land will sell” is a typical phrase you will hear, no matter where an agent is from. While it is not the be-all and end-all, quality can play a big role in what land sells. Farmers selling poorer-quality ground are at the mercy of interested neighbours. Higher-quality farms may have interest from outside the immediate locality and therefore have a greater chance of a sale.

8 Location

Areas with traditionally strong farmers and top-quality land will more than likely have a greater chance of selling. Properties situated along major routeways or that have ample access are also desirable to purchasers. If a farm is located in an area with poorer land or has poor access, it may affect the likelihood of a sale.

9 Age demographic of farmers

According to agents, a noticeable trend emerging is the correlation between the lack of young farmers and reduced sales in that area. If a number of young progressive farmers are in the locality, the farm has a better chance of being sold. Auctioneers said that older farmers with no successor are becoming less active in the land market. This is inhibiting sales, especially in suckler-dominated regions.

10 Size

There is always higher competition for smaller holdings under 40ac. All things considered, these farms make higher prices and sell easier. Larger holdings over 40ac require more capital and tend to be less competitive.

11 Weather

The extremities of last year’s weather conditions pushed up costs on Irish farms, reduced farmers’ ability to access finance and made purchasing land a secondary priority in some cases.