The supply of lands for sale will continue to be limited in most regions, a report from the Institute of Professional Auctioneers and Valuers (IPAV) has found.

Some plots of land in 2021 made as much as 20% over the reserve price, with further increases on the price of land of 10% anticipated.

The report also noted the continued interest for lands for sale from dairy farmers who need to increase their respective land holdings to comply with herd size requirements.

“Exiles returning home, the purchase of land by other business owners and the ability to work from home are all factors increasing competition for the scarce resource that is land, with a lack of supply for both purchase and rental,” IPAV's chief executive Pat Davitt said.

The report also found that there was a noticeable trend in the increased activity in the purchase of land by investors.

The market

"And in the period ahead, the climate change agenda, the new CAP will impact, the trend of farm sizes increasing with the exodus of many part-time farmers arising from poor margins, will all be central factors influencing the market,” Davitt added.

The supply of land for rent is also getting tighter, the report has said, with supply reducing every year.

Munster

Tipperary

Tipperary received some of the highest prices achieved in the country at up to €16,500/acre for quality grassland.

Power & Walsh in Clonmel said that the lack of supply has been the main factor, with prices achieved among the highest in the country.

Dairy farmers looking to extend their holdings to comply with headage requirements and the strong bloodstock sector in the region were key drivers.

Limerick

Group property director of GVM Auctioneers in Limerick Tom Crosse said that 2021 saw the strongest demand he had experienced in 15 years.

He said the supply of new land available to lease in Limerick was very limited and this situation is unlikely to change and banks are now willing to lend for the purchase of land.

“Land continues to be seen as an attractive long-term investment, taking into account current low interest rates.”

Crosse said he has seen increases of up to 20% for quality farmland.

Cork

Dairy strongholds in Co Cork have secured some of the best prices in Ireland for medium to large plots of grassland, up to €14,000/ac - up from €13,000/ac.

Forestry achieved €6,500/acre and lettings achieved up to €300/acre.

Leinster

Kildare

Eamon O’Flaherty of Sherry Fitzgerald Brady O’Flaherty in Maynooth says there was a reduction of up to 50% in the supply of fresh ground coming to the market in 2021.

Prices in 2021 were in the region of €12,000/ac for good-quality permanent pasture and tillage.

“There is an increased number of hobby farmers who can now work remotely, as well as doing a small bit of farming,” he said.

Westmeath

Sherry Fitzgerald Davitt & Davitt in Mullingar said that prices for both quality grassland and tillage achieved in the region of €9,000/ac.

Holdings over 90 acres were in high demand, mainly from dairy farmers. Demand for lands to rent was strong, with average prices for marginal areas at €160 to €200/ac.

Meath

The availability of land for sale in Meath was extremely limited in 2021, with large areas of the county seeing no land sales at all.

Prices were in the region of €6,000/ac for forestry, up to €12,000/ac for quality grassland and tillage and €14,000/ac in north Meath.

Stephen Barry of Raymond Potterton Auctioneers in Navan says a combination of leasing and a reluctance to do anything due to entitlement uncertainty has led to a continued reduction in the volume of lands to rent.

“The key factors are rapid inflation, negative interest rates, volatile equity markets and a favourable tax regime on the investor front and nitrates/environmental (changes) on the farming front," he said.

Connacht

Galway

Minimum prices for grazing land were in the region of €6,000/ac in 2021, with optimum prices for forestry achieving €5,500/ac, according to senior vice-president of IPAV Gerry Coffey.

Land lettings were achieving in the region of €170/ac. Fertiliser, fuel, meal and contractor charges have all increased, “so margins may be tight,” he said. He expects values will continue to increase, with the green agenda helping.

Roscommon

Cathal Meares of Re/Max Team Earley in Roscommon says supply was limited, with strong demand from investors looking for potential returns of 3% to 5% as opposed to negative interest rates from banks.

He said that good grassland achieved up to €8,000/ac.

Ulster

Donegal

"Smaller 10ac to 15ac quality plots were achieving up to treble the price of larger ‘farmer farms’,” said Keith Anderson of Anderson Auctioneers in Donegal town.

"There is good demand from Northern Ireland for lands close to coastal areas," he added.

Certain areas in south Donegal with better limestone quality and good access are attracting greater interest – areas such as Ballyshannon, Ballintra and Rossnowlagh.

Cavan

Strong demand has been seen in the Cavan/Monaghan region, with average prices for grassland of €8,000/ac.

Bailieborough auctioneer Peter Murtagh has said that he sees both demand and prices remaining positive for the next 12 months “despite the obvious increases in input costs”.

"Demand from dairy farmers to purchase alternative land types to comply with headage requirements has been strong," he added.