The prices paid for agricultural land in Northern Ireland (NI) jumped at an unprecedented rate last year to leave the average price in every county at a record high. Overall, the average price paid for land in NI during 2022 stood at £13,958/ac, an increase of 22%, or £2,514/ac, compared to the year previous.

It is the third year in a row that the NI land market has moved upwards. The 2022 average is 40% higher than the corresponding figure for 2019, equating to an increase of just over £4,000/ac in three years.

Armagh has the most expensive land across all 32 counties, with its average price rising by 19% to sit at £19,775/ac. The biggest year-on-year increase was seen in Down, where the average price paid for land shot up by 37% to reach £17,103/ac.

Record highs were also seen Tyrone (£13,858/ac), Derry (£12,962/ac) and Antrim (£12,322/ac). Even Fermanagh, which historically has the lowest county average in NI, saw a 31% increase to take its headline figure to £8,492/ac.

The money paid for all types of land in NI was on the rise last year, although there was a significant gear change at the bottom end of the market. When ranked on price per acre, our analysis shows that the bottom 25% of land sales in NI averaged £8,088/ac last year, up 23% when compared to 2021.

At the other end of the land market, the top 25% of sales averaged £21,128/ac, which is just 5% higher than the same analysis the year previous.

Another notable change in the NI land market concerns the price for larger holdings. In the past, smaller farms generally made more money accordingly as there tends to be more potential buyers for properties that cost less money overall.

However, analysis of the 2022 figures shows that larger farms over 50ac averaged £14,067/ac, which is more than the average price in the 25ac to 49ac bracket of £12,453/ac. That said, the smallest properties on the market are still more expensive accordingly, as farms under 25ac averaged £14,937/ac last year.

When converted to euro at last year’s average exchange rate (€1=£0.85), it is clear that the NI land market has pulled further ahead of the Republic of Ireland (ROI). The average NI land price of €14,844/ac compares to €12,288/ac in ROI. It equates to a north-south price differential of €2,556/ac in 2022, which is €1,209/ac more than the same figure the year previous.

Buyers

Reports from auctioneers indicate that farmers were more active in the NI land market last year. Despite record high input costs, dairy farmers in particular saw healthy profits during 2022 and their presence in the land market was evident.

The usual mix of farmers with significant off-farm income and business people with farming interests continued to bid for and buy agricultural land in all parts of NI.

Unlike other parts of the UK, the NI land market has been largely unaffected by companies buying up land to offset greenhouse gas emissions. Why? Land in NI is too expensive and the farms are too small. If a company in London wants to plant trees somewhere, there is much more land available for far less money closer to home.

A major factor underpinning the NI market is the extremely tight supply of land that is available for sale. Data compiled by the Irish Farmers Journal shows that 12,716ac were publicly advertised in NI last year. While the total area for sale is 7% higher than 2021, it still only represents 0.6% of the overall farmland area in NI.

Our records, which span the past five calendar years, show that the total acreage for sale in NI was highest in 2018 when 16,078ac was offered up. This gradually fell over the next two years and bottomed out at 11,812ac in 2020. There was a marginal increase the area offered up in 2021, which has been followed by a more pronounced rise last year.

Auctioneers from all parts of NI note a step change in land prices over the past 12 months. One auctioneer pointed to the sale of a 14ac block which was initially agreed at £145,000 in 2021.

The successful bidder pulled out when the sale ran into a delay with some legal issues. When it was eventually resolved and re-sold in 2022, the market had moved on and it fetched £168,000.

Likewise, valuing properties is not straightforward. One experienced auctioneer thought he was being slightly ambitious by setting a guide price of £13,000ac for a 20ac parcel last year.

“Four different parties kept bidding until it ended up at £19,000/ac. Its sale seems to have set the pace for the whole area since,” he said.

Hill land averages £2,976/ac

In a separate survey of hill ground and rough grazing, the average selling price in NI last year was £2,976/ac. This represents an increase of £576/ac, or 24%, from the 2021 survey.

The top price recorded in this survey was £3,850/ac for 80ac of rough grazing in Fermanagh. The lowest price seen was also in Fermanagh where 70 acres of heathland sold for £2,150/ac.

There were 1,444ac of hill land offered up for sale across NI during 2022, which is 25% lower than the year previous. In total, 19 separate lots of hill land were on the market last year, making the average property 76ac in size.

NI land survey background

Details of all agricultural land in NI that was publicly advertised for sale in newspapers and online during 2022 were recorded and auctioneers were later contacted for updates on sales.

Only land that could be described as arable, cuttable for silage or good-quality grazing was included in the main NI survey. The auctioneer’s valuation of other features such as houses or building sites were deducted from sale price if it inflated the per-acre land price.

We extend our sincere gratitude to the auctioneers and estate agents who participated in the survey.