Farmland prices are forecast to increase by 6% on average this year, according to Society of Chartered Surveyors Ireland (SCSI) auctioneers and valuers.

The Agricultural Land Market Review and Outlook Report 2025 showed that the average price of non-residential agricultural land last year was €9,900/ac, up 7% from 2023.

In Munster, average rental prices are expected to rise by 8% while in Leinster and Connacht/Ulster an increase of 7% is forecast.

Dr Frank Harrington, SCSI’s rural agency committee chair, said he expects land values to rise again due to better milk prices and recent changes to Ireland’s Nitrates Action Programme.

“Dairy farms are projected to have a robust 2025 and will continue to significantly influence the demand for both owned and leased land,” he said. “Over three-quarters of respondents to our survey (77%) ranked dairy farmers as the main buyer type of agricultural land.”

Land price

Waterford had the most expensive land in the country with good quality land on holdings between 50 and 100ac fetching an average sales price of €23,500/ac.

Meanwhile, Mayo had the lowest land sales prices in the country at €3,075 for an acre of poor-quality land on holdings over 100ac.

The report also noted challenges around succession and generational renewal. Responses from the survey indicated the main reasons for low land volumes coming to the market for sale relate to cultural, taxation and succession planning issues.

Teagasc economist Dr Jason Loughrey said this research highlights the need for policies that allow for gradual transitions rather than abrupt retirement.

“The availability of medium-sized and large plots of land will remain important for younger farmers in regions where dairy and tillage farming are most prevalent.

“We need to put the structures in place now to facilitate this type of land market activity.”