Drainage rules spark caution in land market

The new GAEC 2 rules could particularly hit the value of poorly maintained ground that requires serious reclamation, auctioneers have said.

The restrictions will apply to 1.6m acres and limit drainage work to the maintenance of existing drains – planning will be needed for new drains – and the ploughing of grassland to one in every four years.

“It’s going to leave land that has not been farmed intensively for a number of years harder to sell – especially if you have a piece that was a bit neglected and needs reclamation,” said Westmeath auctioneer Francis Kearney. Kearney predicted that the prices of land will hold where holdings have an existing drainage network. Such land is currently making €6,000-€8,000/ac.

However, if planning has to be sought for new or additional drainage work, then the land’s value is likely to take a hit or push it towards rewetting, he predicted.

“But the new rules have just been introduced so we’ll have to wait and see how they pan out and how they are applied,” the Ballinahown-based auctioneer added.

Ballinasloe auctioneer Joseph Naughton was of a similar opinion. He said heavy land which was capable of being reclaimed was the category of ground which is likely to be most immediately impacted by the GAEC 2 designations.

Value

The new rules could take out a cohort of customers who had “the ways and means” and a track record in converting heavy peaty soils into good grassland, and could therefore affect the value of such land, Naughton explained.

Estimating or calculating the extent of any reduction in value was difficult at this point, he said. However, Naughton insisted that the new restrictions should have little impact on lands where there were existing drains.

Meanwhile, well-known Roscommon auctioneer John Earley agreed that the impact of GAEC 2 on the land will depend “on how the rules are interpreted”. But he said that requiring planning for drainage work was “a major concern” and pointed out that restrictions invariably “limit the number of customers for a place”.