The Institute of Professional Auctioneers and Valuers (IPAV) has released its annual farmland report which has revealed that the average land prices increased by 10% in 2021. IPAV CEO Pat Davitt says “exiles returning home, the purchase of land by other business owners and the ability to work from home are all factors increasing competition for the scarce resource that is land, with a lack of supply for both purchase and rental”.
IPAV’s Phillip Farrell says “the largest sectors — dairy, beef and tillage — have ended up in very positive territory, having experienced significant price increases in 2021”. The report singles out dairy as the strongest agricultural driver of sales and prices. Farell predicts, based on contributions from IPAV members across the country, that challenges in the form of rising input costs, as well as the new CAP conditions.
The report additionally revealed the strength in prices paid for forestry land.
Up to €6,500/ac was paid in West Cork, with an average of €5,500/ac paid for good forestry ground around the country.
The report anticipates the supply of land will continue to be an issue, especially in the rental sector where much ground is tied up in long-term leases.
The report concludes that while the 2022 land market will be impacted by inflation in fuel, feed and fertiliser prices, it expects the fundamentals in the agricultural sector to remain healthy, with another positive year likely.
LSL News.