Low grain prices in 2016 have taken the edge off growers’ appetite for expensive tillage ground this year.

Auctioneers are reporting a drop of between €10/ac and €40/ac for tillage land this year. The growth of longer-term leasing continues apace, limiting the volume of fresh ground available.

Demand for grassland appears to be holding steady at this stage.

Maynooth-based auctioneer Sean Doyle said fresh grassland ground in the north Kildare, Athy and Wicklow region was making €170 to €190/ac on short let.

However, with 90% of land in his remit now going into long leases of five years or more, prices of €160 to €170/ac were being agreed on for those deals.

Turnover deals on existing leases are priced higher, at €200 to €210/ac, said Doyle. “But some people are trying to get them negotiated downwards by €10 to €15/ac.”

Prices for tillage land have fallen from €200/ac last year to €160 to €175/ac this spring.

Demand for potato ground is very strong, averaging €370 to €400/ac, according to Doyle.

In Tipperary, the growth of long-term leases has been notable, although older landowners still favour short-term lettings for their land, according to auctioneer John Stokes from REA Stokes and Quirke.

“More people are looking for long-term leases. They recognise that it is far more tax efficient than short lets, but older clients prefer the shorter let,” said Stokes. “The lease length depends on the calibre of the guy taking the land.”

On tillage, Stokes said: “There’s not much done yet, but it’s making around €150/ac.”

On grassland, he added: “It’s still early days, but it’s steady as she goes, at €150 to €200/ac.”

Roscommon auctioneer John Earley said fresh parcels of prime grazing land, at this early stage, were making €200/ac, but 70% of land was tied up in long-term leases.