Agricultural land prices in Ireland are estimated to go up by 8% on average this year, per a survey conducted by auctioneers. Additionally, the SCSI/Teagasc Agricultural Land Market Review and Outlook Report 2023 has found that national rental fees could rise by 14%.
The survey questioned 134 auctioneers and valuers, and came to some interesting conclusions. Dairy farmers will enjoy some ease, but sheep and tillage farmers face a challenging future. In 2022, rental fees in Munster rose 13%, with costs per acre ranging from €241 for grazing to €383 for potatoes. In Leinster, fees grew 9%, with prices ranging from €248 for grazing to €439 for potatoes.
Non-residential farmland prices in 2022 ranged from €5,564 per acre for poor quality land to €11,172 per acre for good quality land. The increase in demand from dairy farmers for good quality land is cited as a driving force in the market.
Dr Jason Loughrey, economist at Teagasc, noted that the Russian invasion of Ukraine has caused energy and fertiliser prices to stay at a higher level, although there has been some modest decline. Milk prices have gone down from their record levels, and while beef and pork prices are predicted to be higher than last year, margins on sheep farms are expected to decrease. Cereal-based net margins on 50% of specialist tillage farms are predicted to be negative this year.
