Intense farmer competition for rental land has pushed the price of leased ground to unprecedented levels.

Land lease prices have increased by between 5% and 15% on 2021, with good-quality grazing ground generally making between €220/ac and €270/ac.

This is up €20/ac to €30/ac on last year.

But prices as high as €400/ac have been paid in the south and southeast for new lands to the rental market.

A restricted supply of land for rent or lease, combined with high commodity prices over the past 12 months, are cited by auctioneers as the main drivers of the market.

The impact of the Nitrates Action Programme and the hike in fertiliser prices are also contributory factors.

Demand for leased land is particularly strong in the southeast, with auctioneers reporting competition between dairy farmers and those growing vegetables and potatoes pushing the cost of good ground to between €300/ac and €400/ac.

New ground for potatoes in the midlands is making €600/ac to €700/ac, with stubble ground getting up to €400/ac.

Grazing

In Munster, the average lease price for grazing ground has reached €250/ac.

Grazing ground is making from €180/ac to €250/ac in Donegal, but good holdings have made up to €330/ac in long-term leases where there are built-in rent reviews.