Dairy farmers were found to be the main drivers of burgeoning farm sales in a survey done by the Farming Independent of over 100 auctions in 2021. It noted that record prices were paid at auction, with total sales up 34pc to €73.4m.
Covid helped to boost online auctions, resulting in more than 73pc of online sales, or a mix of online and in-person transactions. The option of digital transactions opened up the market to ex-pat Irish across the world, and the anonymity of the process also neutralised potential ‘neighbourly restraint’ in the auction room.
Auctioneers recorded the return to the farmland market of investors and local business interests, as well as dairy farmers, many of whom had formed companies and had sizeable cash reserves.
The farmland boom was also attributed to an increased demand from people leaving urban centres to work remotely, which in turn helped drive prices up.
Smaller holdings formed the bulk of the market, with 49ac being the average size of property sold. Sales around the country averaged at €13,296/ac, marking a 14pc increase on the previous year.
South Leinster came in as the most expensive region with a typical sale of €16,110/ac. The survey catalogued a 17pc increase of the volume of land sold, with money generated rising by 34pc to €73.4m. Farmland sale prices of between €14,000 and €20,000/ac were commonplace.
LSL News.