Blended land auctions might just be commonplace in the future. That is according to Limerick auctioneer Tom Crosse, who appeared at last month’s IPAV’s Farming Report 2022 virtual launch and webinar.
The GVM group property director discussed the current phenomenon of selling farms both in person and online. With computer access, nowadays it is just as easy for a person to purchase a “lot” at a physical auction as it is by somebody on a laptop in another country.
Crosse also noted that people are now able to bid anonymously without fear of upsetting a neighbour, or tenant. “There might have been a reluctance among others to bid against them at auctions or participate in a bidding process. The online system gives them anonymity, and they can do their business without anybody knowing who is bidding,” he said.
“From an agent’s viewpoint it also takes the mystery out of it about how many bidders we may have. Deposits are paid in advance and all live bidders have to register. It’s a great system,” he added.
Last year, GVM oversaw around 1,000 acres changing hands for €15m. “Demand is very strong, driven mainly by dairy farmers and the returning to the market of business people buying land for investment. For example, I put some land on the market in December, which would be very, very unusual for us,” he said.
Another trend he has seen is the return of some Kerry farmers to the market in Limerick.
“They may have been boosted by some share conversions last year that would have increased their financial ability to buy land. They were a little bit absent in previous years, but they are back out again buying.”
Looking to the future, he says the outlook for farming appears positive, which should ensure strong demand for selling and letting into the foreseeable future.
He concluded that, “Banks are amenable to lending into the agricultural sector which also should underpin demand.”
LSL News.