LONG-term leasing, over five years in duration, is becomingly increasingly popular, according to the Society of Chartered Surveyors Ireland (SCSI) and Teagasc’s Agricultural Land Market Review and Outlook Report 2020.

In 2019, the average per-acre price for agricultural land without a residential holding was €8,823. For land with a residential holding, the average price was €9,638. Taken together, the average per-acre price for agricultural land was €9,230.

By far the most active purchasers of land in 2020 are likely to be dairy and tillage farmers, while a large number of agents expect purchasing activity to come from investors and the equine industry in 2020.

Conacre

The total area of land let in conacre remained fixed in 2019. Six percent of agents nationwide experienced an increase in the overall letting of conacre activity in 2019 compared with the previous years.

Nationally, 60% experienced no change in the volume of lettings, while 24% experienced a decline in conacre letting in 2019.

Price

Rental values were up in most categories in 2019 – by up to 14% and 12% respectively in the case of potato and cereal crop land relative to 2018, the report found. Rental values for grazing only increased the most in Munster (9%) but were down 12% in Leinster from €190/ac to €170/ac. Prices in Connaught/Ulster increased by 2%.

Land market outlook

Experts warn that Covid-19 will act as a negative to the market. The short-term economic impact is likely to be quite negative, but the report says that the agri-food sector should among first to see the benefits of a return to normal activity.