Agricultural land prices should increase by 6% this year, compared to 4% in 2021. Restrictions caused by the pandemic have created supply pressures and increased demand, which has had a knock-on effect on pricing.
However, Teagasc and the Society of Chartered Surveyors Ireland released a report highlighting associated inflationary pressures, accelerated by the war in Ukraine, which are also impacting farm input prices and therefore affecting incomes.
The rising cost of fuel, fertiliser, and feed as well as higher production costs are a concern for farmers wondering whether higher farm output prices will cover their higher input costs. On the positive side, grain, dairy, and meat are already selling for higher prices than forecast in March 2022.
Good-quality land costs 17% more than last year, according to the Agricultural Land Market Review and Outlook Report. The price per acre for good-quality land is about EUR 10,962, compared to EUR 9,381 in 2021. Sites in Co Kildare are more expensive though, priced at about EUR 15,350 per acre. In Co Cork, land averages EUR 15,070 per acre. Louth at EUR 14,500, Meath at EUR 14,230, and Tipperary at EUR €14,000 are the next most expensive counties for good-quality land.
Meanwhile, rentals should increase by 10% nationwide with 12% possible in Leinster. This is according to a survey of 95 auctioneers and valuers earlier this year. Leinster recorded the best rental growth last year, with prices for silage, grazing, potatoes, and other crops increasing by 18-29%.
Rentals in Munster and Connacht/Ulster should increase by 9%.