Over €350/ac/year is understood to have been paid for the lease of a 173ac grazing farm in Laois.

The farm at Luggacurren, Portlaoise, was taken by a dairy farmer from the area in a five-year agreement.

The property was leased at auction by Castlecomer-based estate agent Joe Coogan.

A 3.5ac field, which is part of the same property, was leased separately and made €505/ac/year for five years.

There were three bidders for the main block of land, two of which were dairy farmers.

The farm was withdrawn at €330/ac/year, but a lease price “north of €350/ac/year” was agreed later, Coogan told the Irish Farmers Journal.

Buildings

The farm buildings are also included in the deal. These comprise a number of round-roof sheds with lean-tos.

Coogan expressed delight at the lease price, pointing out that it equated to over €60,000/year in total.

He felt the lands could have made more if it were possible to subdivide the property and offer it in 40ac to 50ac sections, but that was not an option.

“I’d be optimistic for the letting season ahead after this auction,” he said.

“We had three active bidders and there were four or five more men in the room that I’d say were willing to give €320/ac,” Coogan maintained.

“This was a big fence to jump this early in the season, so it was a positive result,” he said.

'Good grass farm'

Coogan described the property - which has no entitlements and is located six miles from Stradbally, nine miles from Athy and 11 miles from Portlaoise - as a “good, well-fenced grass farm”.

“It’s an easy property to manage. There is water throughout and you could cut silage off the most of it,” he said.

Commenting on the land rental market, Teagasc’s head of knowledge transfer Joe Patton said advisers had seen more caution among farmers this year.

“I think what we’ve seen is more and more farmers being cautious and doing their sums on the value of additional rental land to their business,” he said.

“Some farmers have found that the value of land - particularly in a year when grass production is reduced - is lower in real terms because the tonnage of grass produced is down,” Patton maintained.