With the deadline for Basic Income Support Scheme (BISS) applications appearing on the horizon, auctioneers continue to report that the supply of new land for leasing is still not matching the levels of demand.

This, in turn, is resulting in extra competition when a farm comes on the market for a first-time lease and well-maintained farms – especially with modern yard facilities – can command a premium.

Monaghan farm

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An 82.5ac farm in Co Monaghan which is reported to have been leased for around €500/ac is a prime example of this. Listed initially just over a week ago with Fee and Associates, a seven-year lease was agreed relatively swiftly for the farm at Lissnalong.

All in one block, fenced with mains water along with a yard that has accommodation for 150 cattle, it demonstrated the huge appetite that exists around such properties at this time.

Stephen Barry of Navan-based Raymond Potterton Auctioneers believes that prices are being driven by nitrates stocking levels and whether there are entitlements included with the land coming for lease or not.

“Those two things are artificially driving prices, especially for less-productive land which is making very close to premium in comparison to good grazing land which comes with a modern yard.

“Nitrates has cooked the market, land is all the same for stocking rates,” he said.

“A farm that has money already invested in reseeding, fencing, drinkers and with sheds is getting into the high €400s/ac, and it could be more compared to a place without those in place.

“And if the farm has a milking platform with good dairy facilities, well that really is a different ball of wax completely.”

Regarding new ground, Barry said: “It’s mainly renewals, but anything new that comes to the market is very competitive.

“We’re seeing five-year leases rolling into seven and both parties are looking at an extra €80/ac on average.”