A strong farmland demand in 2022 drove prices as high as €25,000/ac in some parts of the country, says the Institute of Professional Auctioneers and Valuers (IPAV).

In its 2023 Farming Report, the IPAV found that while prices were as high as €25,000/ac for some land, there were also lows of €7,000/ac elsewhere, for an overall average of €12,231/ac.

This new average price per acre for agricultural is up from €8,750 in 2016, when the IPAV annual report first began, an increase of some 40%.

The IPAV also found that prices paid by farmers to rent land were as high as €500/ac in 2022 due to “unprecedented demand”.

Regional breakdown

There were some regional land price differences seen in 2022, according to the report.

Michael Brady of Brady Group Land Agents, Cork, said that “sale prices are also well up on 2021, with quality grass or tillage achieving approximately €17,000/ac, an increase of over 20% on 2021”.

In Meath, Stephen Barry of Raymond Potterton Auctioneers said: “Average prices in this area have also seen increases from €11,000 to €15,000 over a two-year period.”

Agricultural land prices have risen some 40% since 2016, says the IPAV.

“What is very significant and simply highlights the demand from farmers to secure additional lands to rent, to comply with nitrate regulations and herd size, is a nearly 100% increase in the average price achieved for lands to rent, from €200 to €380/ac.”

In Wexford, Anne Carton of P N O’Gorman Auctioneers said: “Average prices for quality grassland have increased from €12,000 to €14,000/ac, up 17%, year on year.

“Significantly, the increase over two years was 40%. Due to limited supply, prices in excess of €20,000/ac were achieved in 2022 for smaller holdings,” she said.

‘Significant increase’

Gerry Coffey of Gerry Coffey Auctioneers, Galway, said he has seen a “significant increase in land values for grazing land, from €6,000/ac in 2021 to €8,000 in 2022”.

Coffey, who is also a president of the IPAV, said: “Now that CAP has been sorted, a big issue will be herd size.”

He described how the value of marginal land is also continuing to increase, “as a result of new environmental methods of farming for poorer-quality lands and increased premiums for forestry”.

On the continued appetite from farmland buyers and renters, IPAV CEO Pat Davitt said: “While farming sees new challenges each year, be it those arising from Brexit, climate change or political volatility, it’s an incredibly resilient sector and has shown itself to be very adaptable.

“This year, changes taking place in the Common Agricultural Policy, in particular the non-clawback on single premiums, will be eagerly watched to see what impact it will have on prices.”

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