Land prices in 2021 displayed what selling agents across the country describe as a “very discernible uptick”.
According to the latest IPAV Farming Report, which Minister McConalogue launched earlier this week, land values rose by 10% last year, depending on locations.
Estate agents report that some choice plots made as much as 20% over reserve prices.
However, while the dairy, beef and tillage sectors have experienced “significant” increases, some niche sectors – such as poultry and pigs – experienced “real challenges”.
The report points to higher input costs arising from spiralling inflation as a “prevailing” feature of the market.
It lists a 100% increase in fertiliser costs and an “eye-watering” 250% increase in nitrates.
Pat Davitt, IPAV Chief Executive, says there are several factors impacting the market, including:
- Behavioural changes in response to the pandemic;
- The ‘green agenda’ in policy terms;
- Rising inflation;
- ‘The chase for yield’.
He says the following factors increase competition for the “scarce” resource, that is, land:
- Exiles returning home;
- The purchase of land by other business owners;
- The ability to work from home.
He confirms there is a lack of supply for both purchase and rental.
CAP and exodus of part-time farmers
Davitt believes if the “strong” prices experienced in 2021 are maintained in 2022, it may “prove a difficulty” in terms of the availability of land for forestry.
Continuing, he said: “And in the period ahead, the climate change agenda, the new Common Agricultural Policy will impact.”
“The already well-embedded trend of farm sizes increasing with the exodus of many part-time farmers arising from poor margins, will all be central factors influencing the market,” he concluded.
Land prices in Leinster
The report delves deeper into supply and demand in each province, along with prices and general commentary from estate agents.
In this article, we published information about land prices in Leinster in 2021 and included some estate agent’s outlooks for supply, demand and prices in the year ahead.