The cost of long-term agricultural land leases averaged €205/ac nationwide last year, new Irish Farmers Journal analysis of over 2,200 newly registered leases has found.

Leinster and Munster were the provinces with the most expensive long-term leases registered with the Property Services Regulatory Authority (PSRA) in 2024, as averages hit €227/ac and €213/ac, respectively.

The lowest prices for new land leases at provincial-level was the €155/ac average paid across Connacht’s counties for 2024, while €166/ac was the declared price in Ulster’s three counties south of the border.

Laois saw the highest average prices for new leases coming into effect last year at €268/ac, followed by Meath at €262/ac.

These higher prices reflect the demand for land from tillage, dairy and potato farmers in these counties. A strong leasing market in Tipperary saw the Premier County’s land comes in at third place, averaging €256/ac.

The lowest prices were paid in Mayo, where new land leases averaged €109/ac, followed by Leitrim at €125/ac.

The average duration for new leases notified to the PSRA in 2024 was six-and-a-half years. This is unsurprising, given that the vast majority of leases have been agreed to cover a period of at least five years – the minimum duration needed to avail of income tax reliefs for earnings from leased agricultural land.

The size of holdings leased came to an average of 53.4ac, with Kerry and Kildare witnessing the largest average area for new leases at 79ac and 70ac. Smaller leases dominated in Leitrim and Mayo, where the average leaseholds covered a respective 30ac and 38ac.

Skewed averages

Some land leasing trends within individual counties may be masked by looking exclusively at weighted average costs. Further analysis of leasing figures flag Carlow and Laois as counties where the median lease values were significantly higher than the average (mean) price per acre.

This means that although leases in Carlow averaged €197/ac, half of all new leases went for above €242/ac. Similarly, half of the new leases signed in Laois were above €326/ac, while the county’s average was €268.

These figures suggest that a sizeable proportion of leases in Carlow and Laois were for smaller areas at above-average prices. Leitrim and Donegal emerge as counties where the opposite trend appears to have played out. Co Leitrim saw an average lease price of €125/ac with half of all leases agreed below €104/ac and Donegal’s respective figures came to €129/ac and €100/ac.

Registering leases

Those who take out leases on commercial property, including farmland, are required to submit a commercial lease return to the authority after receiving a stamp duty return for the property.

Leases not registered with the PSRA could not be included in the analysis and lease values not deemed to lie within the typical range of values seen in the land leasing market – such as those agreed for periods of over 25 years, those covering less than an acre of land and leases with values below €50/ac or above €800/ac – were not included when calculating the averages.

The average lease values provided do not account for specific terms attached to some leases, like the tenant having to pay for specified farm repairs or pay farm insurance.

The figures are also unable to take account of the inclusion or otherwise of direct payment entitlements as this data is required in PSRA lease returns.

A spokesperson for the PSRA said the authority is provided basic information in respect of commercial leases by the Revenue Commissioners when a stamp certificate has been issued to the tenant following the making of a stamp duty return to the Revenue Commissioners.

It stated: “The authority does not receive information as to whether entitlements are included or excluded in the agreed rent as declared to the Revenue Commissioners.”