Marketplace uncertainty seems to have had a marginal effect on land leasing. In the main, auctioneers have said that prices are similar to last year and that demand for naked land, without entitlements, is strongest.

Prices range from €130/ac to €300/ac mostly, but up to €400/ac in some cases.

Reports suggest that where lease arrangements are at or near market value, they are rolling over, and the dependability of the tenant is more important than price increases.

Richard Ryan in GVM, Kilmallock, told the Irish Farmers Journal: “Leasing is busy at the moment, there is more market on the land this year. The market is hot and cold. Middling to bad land makes more than it’s worth when naked.”

Huge interest

In Tipperary, Eoin Dillon said that of the three sites he had available this year: “The one that was naked and relatively poor land had huge interest and that made €200/ac.”

He added that the market is sluggish and “a lot of the dairy guys that expanded are not expanding further this year. We are back €50/ac on last year.”

In west Cork, Dunmanway-based auctioneer Daniel Lehane said that the leasing market is the same as last year.

“It’s not up but it’s not back either. Renewals of long-term leases see marginal increases of 5% or 10%. A lot of it comes down to the relationship and if the tenant is looking after the place and paying on time. A lot of guys with derogation or nitrates will want the maps.”

Middling to bad land makes more than it’s worth when naked

Padraic Murtagh of James L Murtagh auctioneers in Mullingar, said prices are anything from €150/ac to €280/ac.

Paddy Jordan in Newbridge, Co Kildare, said: “Prices are staying the same. €150/ac to €250/ac is the bracket, for naked land.”

Terry Drake of Drake Auctioneering in Granard, Co Longford said: “Leasing is crazy this year. Anything from average quality land is going for over €200/ac and good quality naked land is going for over €300/ac.”

Things are slightly quieter in the west, where Patsy Smith from DM Auctions in Sligo says that there is “not much leasing done yet”.

He added: “There is huge demand from existing and young farmers. The range, depending on quality, is from €150/ac to €250/ac for land without entitlements.”