Rental prices: Agricultural Land Market Review
The Society of Chartered Surveyors Ireland / Teagasc Agricultural Land Market Review and Outlook Report 2022 contains data that highlighted how land rental prices have increased over the past ten years.
The report, which the bodies published on Tuesday, April 12th, 2022, compares rental prices for land for grazing/meadowing/silage, grazing only, cereal crops, beet, maize and beans and potatoes from 2010-2021 inclusive.
Across most categories and provinces, the SCSI Land Market Survey shows that land rental prices have increased year on year.
Land rental prices have ranged from €109/acre (grazing only in Connacht/Ulster in 2010) to €463/acre (Leinster – excluding Dublin for potatoes in 2021) over this period.
SCSI agents reported that demand for long-term leasing “continues to rise” in the market.
85% of agents reported seeing an increase in demand for long-term leases compared to 2020. The figures show that this is up 10% year-on-year.
Source for below data: SCSI Land Market Survey:
Land rental values and availability in 2022
They expect the following changes to land rental values in 2022 compared to last year:
- 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.
Furthermore, 98% of agents reported seeing “demand sustained or increasing year-on-year” for such leases.
The report cites farmers who have retired from the profession (92% of agents report this cohort as being somewhat or very active), and landowners who have inherited land but who have no desire to farm it themselves (88% of agents reported this cohort as being somewhat active or very active in 2021) as the main drivers of the availability of land for leasing.
Land volumes and dairying demand
According to the survey, 29% of agents expect the volume of agricultural farmland available for lease in 2022 to increase.
About 33% expect the land available for lease to remain similar to 2021, while 38% see the volume of land available decreasing.
The report acknowledged that demand for land in the rental market could be particularly seen among dairy farmers, from whom 90% of agents expect to see an increase in the demand for land to lease in the upcoming 12 months.
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