Commodity prices at play when it comes to land leases

It’s going to be an interesting first quarter to 2026 for land leasing according to Andy Donoghue of Hodnett Forde Property Services, Clonakilty.

“The nitrates derogation is settled for now but the unknown is where milk price will go. Milk cheques are thinner and so much in terms of lease pricing will be determined by that price per litre of milk. The first six weeks of the year will be interesting.”

With a lot of land tied into long-term leases, Donoghue has seen a change in how some renewals are handled. “What we’re noticing now is a lot more being done before ground comes to the market. It’s mostly renewals at this stage but we’re finding if a lease is coming to an end and it’s not being renewed then either the tenant or landlord is finding a new tenant. That’s become more common.”

It’s steady as she goes in the Laois area, according to John Hennessy of Hennessy Auctioneers in Portlaoise.

“Compared to what was there in the last 12 months, prices are on the same level for new leases, maybe up or down a little but it’s mainly €350 to €400/ac. Supply and demand are the drivers and the supply of new ground isn’t there.

“Dairy will be the one to watch. Concerns have eased on the derogation but milk price is the concern. It’s usually April or May before dairy farmers have a good handle on how the year will be but most leases are wrapped up by the end of February.”

With increased beef prices, beef farmers have had a bigger say in the land rental market than other years, Seán McRedmond of Raymond Potterton Auctioneers in Navan said. This is especially the case in the northeast.

“Turnkey grassland properties are the most sought-after at the moment. They’re making from €350/ac to €450/ac. If it’s well-fenced with good facilities and water there’s huge demand. After that it’s bare ground with no entitlements. Something new we’ve seen emerge is demand for extra land for silage from farmers who are experiencing difficulties with TB.

“Five- to 10-year leases are most common with the area on the conacre market reducing significantly.

“A lot of tenants realise the demand is strong for land and if it makes sense for them, they’re more than willing to stand on for another couple of years and renew the lease if it is in line with the market.

“We’re seeing less demand for potato ground, but if high-quality land comes up demand is still strong and some cereal ground is making around €500/ac.”

Appetite

Fermoy-based, Denis Collins from Collins O’Meara Auctioneers Valuers and Estate Agents said appetite is still strong in the Blackwater Valley.

“We’re getting around €300/ac for tillage ground and drystock land is holding at a similar level. Land owners are happy with a price that is fair for both parties and with a decision made on derogation for now there’s a bit more peace of mind for now at least.”

He also noted that longer-term leases are now being favoured.

“It was five to seven years, but they’re nearly all looking at seven to 10 years and it’s being pushed by both parties.

“The lessee wants a bit more certainty and the tax break element is appealing to the lessor. We’re also drawing up more leases for farmers who have gone into companies and they must lease the land from the individual.”

When it comes to renewals, Clonmel-based Pat Quirke of PF Quirke & Co Ltd said: “Good-quality land in long-term leases that was making €300/ac has moved on to €350 to €375/ac and I’m seeing land that is new to the leasing market make €400/ac or over for land with entitlements. For bare land you’re looking at €450 or more.

“Lesser-quality land that would have been leased at €200/ac in the past is now making €280/ac to €320/ac.

“At the other end of the spectrum, we’re seeing commonage make from €65 to €80/ac. We’ve seen a lot of this in recent years and have some availability again for 2026.”

In the west, Tom Tyrrell of Tyrrell Auctioneers, Tuam said: “Figures of €300/ac can be had for good ground, we’re getting that for land that is close to Tuam town and it’s working back from that then.

“We’re constantly getting calls for extra land but it’s just not there at the moment.”

In the southeast, David Quinn of Quinn Property also noted supply isn’t keeping pace with demand.

“We wrapped up a few deals for farms set for winter crops and despite bad returns in tillage, rents seem on par with this year.

“Tillage and grassland is mostly making from the high-€200s/ac to €300/ac if it’s a grain crop with more available for grassland in some cases. Where maize and beet can be grown that’s around €350/ac and if it’s potatoes or vegetables you’re looking at €400/ac.”