There’s been an increase of up to 20% for quality farmland in Munster as land prices in the region reached up to €16,500/acre in 2021. This was revealed in the latest IPAV Farming Report released earlier this week. The increase in the price of property in the region has been mainly due to the vital role of dairy farmers.
According to FIPAV’s Tom Crosse, 2021 had seen the strongest demand for land in Munster in 15 years. While land is seen as a long-term investment, Crosse adds that banks are now willing to lend for the purchase of land.
With the price of land in Tipperary remaining the same per acre it’s understood that quality grass in the area has been cited as the main factor for purchase. Crosse adds that “dairy farmers looking to extend their holdings to comply with headage requirements and the strong bloodstock sector in the region were key drivers.”
Moving across the region to Cork, there has been a stronger sense to purchase as dairy strongholds have secured some of the best prices in Ireland. Medium to large plots of grassland there are now reaching up to €14,000/acre.
Investors are now likely to choose to hedge against high inflation rates and continued poor interest rates.
Crosse says the supply of new land available to lease is very limited and this situation is unlikely to change.
LSL News.