Rental land is scarce as we move into May, with prices at €200/acre to €250/acre.

According to auctioneers, this is partly due to the growing popularity of long-term leases.

“Things have changed dramatically. It’s all long term leases now as farmers become more cautious,” said auctioneer Michael Barry from Fermoy, Co Cork. “The volatility is going out of the market.”

Right across the country there has been good demand all year, with prices particularly high for grassland.

Entitlements

As farmers finalise their BPS applications there is some trading of naked land also.

“As people wind up with Teagasc, I get a call saying ‘this is surplus to requirements’. No sooner do I have it and someone is on the phone to take it off me,” according to auctioneer Sean Doyle in Maynooth.

For people who cannot get their hands on land on time they are putting entitlements up for lease. In the northwest entitlements are being leased anywhere from 55% of their value to 75%. While auctioneers on the east coast and in the south said they are going for 70% to 75% of their value.

Strong trade

“There is no shortage of people looking for entitlements,” said auctioneer David Quinn, Carnew. “We can do any amount of trading on them. I’d say they are running about 5% higher than last year.”

While the 50% clawback on entitlements sold made that option very off-putting, the change to 20% is not encouraging many to sell.

“Sale is still not attractive enough, but there are a few happening,” according to auctioneer John Earley in Roscommon.