According to IPAV’s latest Farming Report, which the professional body published this week, land prices reached up to €16,500/acre in Munster in 2021.
Estate agents across the province reported that dairy farmers played a key role in achieving what were among “some of the highest prices in the country”.
Munster land prices
Firstly, in the Limerick region: Tom Crosse FIPAV, immediate past president of IPAV and GVM Auctioneers in Limerick, says 2021 saw the “strongest demand” he had seen in 15 years.
He reported increases of up to 20% for quality farmland.
Crosse said the supply of new land available to lease was “very limited”, and this situation is “unlikely” to change.
“Banks are now willing to lend for the purchase of land. “Land continues to be seen as an attractive long-term investment, taking into account current low-interest rates.”
Tipperary
Moving to the Tipperary region, Dermot Power MIPAV of Power & Walsh in Clonmel, said a lack of supply has been the main factor.
The firm achieved prices of up to €16,500/acre for quality grass, which “are among the highest in the country”.
“Dairy farmers looking to extend their holdings to comply with headage requirements and the strong bloodstock sector in the region were key drivers.”
Cork
Meanwhile, in the Cork region, John Hodnett, MIPAV of Hodnett Property Services in Clonakilty, says dairy strongholds have secured “some of the best prices” in Ireland for medium to large plots of grassland, up to €14,000/ac, up from €13,000/ac.
He outlined that forestry achieved €6,500/acre, while land lettings achieved €300/acre.
Elsewhere in the county, Michael Brady MIPAV – Brady Group said the firm experienced “strong” demand in all sectors.
He explained that an important driver of demand in his region was profitability from dairying.
Brady outlined prices have ranged from €14,000 for quality grassland and up to €14,000 for tillage.
He expects this demand to continue right through 2022. “Investors will likely choose to hedge against high inflation rates and continued poor interest rates.”
The estate agent also expects the availability of land to lease on a long term basis to be somewhat “limited”.
He believes farmers will “wait to see what their BIIS entitlements will be under the next CAP.
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