The trend of limited supply of new ground coming on the land leasing market appears to be country wide, according to auctioneers, as farmers from all sectors look to tie down land into long-term leases. Demand has been extremely strong for rented land in the northeast, auctioneer Raymond Fee of Fee and Associates said.
The trend of limited supply of new ground coming on the land leasing market appears to be country wide, according to auctioneers, as farmers from all sectors look to tie down land into long-term leases.
Demand has been extremely strong for rented land in the northeast, auctioneer Raymond Fee of Fee and Associates said.
“Land leasing is going very well at the moment.
“We signed-off on a five-year lease for a 6.3ac holding with a cattle shed and crush for €715/ac with a beef farmer the successful tenant.
“For good land across the region, we’re getting anywhere from €400/ac to €500/ac comfortably.
“Dairy and tillage farmers are the main drivers of it.”
There’s also a solid appetite for poorer ground, mainly for grazing.
“You’re looking at €350/ac to €400/ac for that in a lot of cases. Right now we have a range of ground that’s new to the market from 130ac to 40ac,” Fee said.
Roscommon-based Cathal Meares of Remax Estates said: “Around here, €300/ac day and night for good land and up to €350 can be got on 20 to 200ac on good ground for a long-term lease.
“More marginal land is anywhere from €150 to €250/ac.”
He has noticed more interest from younger farmers.
“You have young farmers trying to get a start. They’re as much of a player in the rental market [as anyone]. They’re looking for longer term leases because of the reliefs they can get,” Meares said.
Land owners are also becoming more selective on their potential tenant.
“The tenant’s track record is also a factor in the final decision when it comes to renting out land.
“That’s something that’s becoming more popular among farmers who are leasing their land.”
Supply is extremely tight and demand is very high in Tipperary, according to Alison De Vere Hunt of Cashel Mart.
She’s also noticing that leasing for solar is a consideration in some instances and some land owners are slower to go into long-term leases.
“A few are thinking of solar, so that’s going to take land out of the equation.
“There are some big tranches of land that have planning applications in for it.
“That can take years but we could see well over 1,000ac taken out of livestock and tillage production and that’s turning some land owners off long term-leases.
“That ground is gone from dairy, drystock and tillage farmers then.”
She added that dairy farmers are in a good position this year and that’s showing in the marketplace.
“There’s good strength on bidding for leases from dairy farmers this year.
“Milk price is up and confidence is back, that’s giving more competition and prices are definitely up on last year.
“I’m seeing that in some of the rollover leases that are being renegotiated. Land owners are looking for a bit more.
“They’re happy with the tenant but aware of how the market is going at the same time.”
Cooling
Further south, Eamonn O’Brien of CCM Property Network said there has been a cooling in the market following a hectic start in January.
“We’re probably seeing €20/ac to €30/ac of common sense coming into it now and €370 seems to be the new €400.
“There was a bit of panic when some of the drier ground came on the market early on and some of it was pushed into €400/ac to €500/ac. Maybe the people doing that got what they needed.
“There’s quite a bit of land still presenting on the market with much of the heavier land only coming up now.”
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