Farmland prices are predicted to rise this year despite the pandemic, a new study revealed.
According to Teagasc – the state agricultural development authority – and the Society of Chartered Surveyors Ireland (SCSI) non-residential acreage prices remain resilient even with the pandemic.
Nationally, the average price for non-residential land ranged from €5,900 per acres for poor quality land to €9,381 for good quality plots. The report found that Kildare had the most expensive farmland with good quality lots fetching €13,600 an acre. Leitrim had the cheapest, with poor quality plots valued at €3,250 an acre.
The Joint Agricultural Land Market Review and Outlook predicts that strong demand in 2021 for land will lead to a price rise of 4 per cent and a second year of growth in farm incomes.
Farm incomes rose 6 per cent while Teagasc and the surveyors said they expect them to grow by another 3 per cent this year.
Leinster was the most expensive province to buy a farm in 2020 and was most in demand with young farmers driving the market. In Munster, dairy farmers are responsible for most property activity.
James Lee, chairman of the SCSI’s rural agency group said: “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.”
LSL News.