Land values: Over €5,000/acre of a difference between good and poor quality
As a national average, there is an approximately €5,654/acre differential in the price of good quality land compared with poor quality.
That is according to the Society of Chartered Surveyors Ireland / Teagasc Agricultural Land Market Review and Outlook Report 2022, which the bodies released last week.
The report provides average land values for non-residential and residential farms.
The bodies provide average land values by plot sizes of less than 50-acres, between 50 and 100 acres, and over 100-acres for poor and good quality land.
According to the report, the national average land value (per acre) in 2021 (non-residential) for poor-quality land stood at €5,308/acre, while good quality land rose to €10,962/acre.
On average, national land values in 2021 for good quality plots achieved €10,962 per acre. According to its 2020 report, this is up from €9,381/acre (an increase of 17%) in twelve months.
According to the report, land parcels less than 50-acres of poor quality levelled at €5,691/acre, while plots of this size but “good” quality levelled at €11,841/acre.
Meanwhile, bigger-sized non-residential farms with land of poor quality averaged €5,316/acre, and good quality averaged €10,894.
At the upper end of the sale, non-residential farms over 100-acres, with poor quality ground levelled at €4,917, while good quality reached €10,153/acre.
According to the report, for all three size categories, the price growth was weakest in the Connacht-Ulster region. This witnessed a decline to the tune of 7% in the price for parcels greater than 100-acres.
When looking closely at average land values on a national basis (plot size and quality), smaller plots of land generally achieve a higher per-acre land value.
The authors cited increased competition for land in smaller lots by not just farmers but also non-farming purchasers, perhaps, looking to buy land to construct a house or stables, for example, as the main driver.
In terms of the next year, selling agents expect land values to increase by 6%.