The average farmland price across the country increased to €11,906/ac in 2021, the Irish Farmers Journal can reveal.

The average price rose by 16%, or €1,650/ac, last year, according to the Irish Farmers Journal Agricultural Land Price Report 2021.

The increase was driven by continuing strong demand but a lower supply of land for sale. The number of farms put up for sale fell by 15% on the year before. The total number of acres on offer was down 11%.

Prices rose in 21 counties, notably in Clare, Dublin, Monaghan, Meath and Westmeath.

Buyers

The dominant buyers of land last year were dairy farmers and buyers with non-farming income. The latter bought 40% of the holdings that sold, up from one-third the year before. This category includes part-time farmers with other income. It includes business people and others who see farmland as a good investment.

A handful of holdings were bought by business people planning to re-wild the land or to use it for carbon offsetting for their core business activities.

The 2021 Land Price Report is an Irish Farmers Journal publication in association with AXA.