Farmland prices: 6% increase in 2022
Selling agents across Ireland expect farmland prices to rise by 6%, on average, in the next twelve months.
That is the figure in the Society of Chartered Surveyors Ireland’s / Teagasc’s Agricultural Land Market Review and Outlook Report 2022, which the bodies published on Tuesday, April 12th, 2022.
Agents say their forecast is dependent on the impact and longevity of the conflict in Ukraine, particularly concerning input costs and the profitability of Ireland’s farming sector.
Furthermore, they believe that demand for good quality land will be “strong” this year. In their view, dairy farmers continue to rank as being the most likely purchasers of land across the country.
The report also explained that agents expect to see “demand outstripping supply” on the agricultural property front this year.
They cited that the supply of land for sale is a “constant” challenge, as some pointed to high rates of CGT as one reason why some farmers may opt to lease their land instead of selling it.
Land rental prices
On the other hand, SCSI agents expect national land rental prices to rise by 10% in 2022.
They expect the following changes to land rental values this year compared to 2021:
- Connacht/Ulster: 9%;
- Leinster: 12%;
- Munster: 9%.
According to the report, the anticipated increase in values reflects the tightened supply of rental land, particularly as land parcels continue being tied up in more longer-term leases.
In terms of demand, according to the SCSI Land Market Survey, 29% of agents expect an increase in the amount of agricultural farmland for lease this year.
Some 33% believe the volume will remain the same, while a further 38% are of the view that will a smaller quantity of land available for rent.
52% of agents believe there will be changes in leasing demand from dairy farmers for agricultural land this year, while 38% are expecting a “significant” increase in this respect.
A mere 2% see a decrease occurring, while the remaining 8% of agents are forecasting little/no impact.
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