18 Aug 2022

Longford agri land fetches up to €7,900 per acre

Land prices

A new land report shows that Longford agri land prices range from €5,500 to €7,900 per acre.

A new land report shows that Longford agri land prices range from €5,500 to €7,900 per acre.

Society of Chartered Surveyors Ireland (SCSI) auctioneers and valuers say land prices remained resilient last year despite the threat posed by Covid and are predicted to rise by 4% on average this year, underpinned by a rise in farm incomes as well as strong demand and reduced supply.

According to the SCSI / Teagasc Agricultural Land Market Review and Outlook Report 2021 the price in Leinster for an acre of non-residential land under 50 acres last year ranged from an average of €7,400 for poor land to €11,200 for good quality.

The report found that Leinster had the highest prices in 2020 because of the higher quality of land in the province and the high demand for it.

For good land, less than 50 acres, average prices in the province ranged from a high of €13,600 in Kildare – the highest in the country - to €7,900 in Longford, while the prices for poor quality ranged from a high of €8,300 per acre in Kildare to €5,500, again in Longford.

The two prices quoted for poor and good quality land in Longford were the lowest in the province.

The survey of 156 auctioneers and valuers from all over the country – which was conducted in February 2021 – found that demand for rented ground also remains strong with rents this year expected to rise by 8% in Leinster, 6% in Connacht/Ulster and 5% in Munster.

Jonathan Quinn of Quinn Property Partners, Chair of the SCSI’s Residential Agency Group, said that lockdowns due to Covid had led to a reduction in the volume of sales.

“The inability to view holdings or physical auctions led to a significant increase in the number of sellers postponing plans to sell land. In our survey, over a third of agents (35%) reported a decrease in the volume of land sold in 2020 compared with 19% in 2019. Virtual viewing options have been available to sellers, but clearly many have a preference for more traditional auction sales.

“Agents in Leinster say younger farmers with a Green Certificate, which is a level 5 qualification are helping to drive the market. However, they caution that land price expectations from some vendors are simply unrealistic at this present time.

“While Covid has affected sales activity, it hasn’t affected output or prices and as a result farmer confidence about the future has been unaffected. The land market has shown strong resilience throughout the pandemic and agents believe prices will rise on average by 4% this year.”

Mr Quinn added, “The low level of supply is again an issue in the rental market, but its not Covid related.

“Here the issue is leases with twenty-four per-cent of agents reporting a decline in the volume of land leases in 2020 compared to just 8% in 2019 as more land is ‘locked up’ in long-term leases.”

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