Survey finds average Mayo farmland prices range from €3,590 to €8,580 per acre
SCSI auctioneers and valuers say that following strong price growth in 2021, particularly for good land, the price of agricultural land in general looks set to increase by 6% on average this year.
In a major new survey, chartered surveyors, auctioneers and valuers operating in the agricultural and rental markets say sales activity was boosted by the exit from Covid restrictions and they predict prices will continue to rise, underpinned by strong demand and a continuing low supply of land for sale.
The price of good land showed the biggest increase in 2021 – up by an average of 17% nationally from €9,381 to €10,962 per acre. The price of all non-residential land, on holdings of less than 50 acres, also showed significant increases.
In Munster prices were up 14%, in Leinster they rose by 12%, while the increase in Connacht/Ulster was 5%.
The average price of an acre of good quality land under 50 acres in Mayo was €8,580, up slightly on the 2020 figure of €8,225. The average price of an acre of poor-quality land on a small holding in Mayo was €3,590.
According to the Society of Chartered Surveyors Ireland/Teagasc Agricultural Land Market Review and Outlook Report 2022, average prices in Connacht /Ulster ranged from €13,375 per acre in Donegal for an acre of good, non-residential land under 50 acres – the highest in the region – down to €5,025 in Leitrim, the lowest.
While the average price of poor-quality land may be up on smaller holdings across the three regions, nationally the average price for poor-quality land dropped from €5,900 in 2020 to €5,308 last year, a fall of 10%. This decline can be attributed to price developments for larger parcels of poor land in Munster and in some parts of Connacht/Ulster.
The report found the demand for rented ground remains strong, with rents this year expected to rise by 10% nationally. Looking at the provincial picture, agents expect rents to rise by 9% in Connacht/Ulster and Munster and 12% in Leinster.
The survey of 95 auctioneers and valuers from all over the country was conducted in February and March 2022.
Commenting on the findings, Teagasc economist Dr. Jason Loughrey said that inflationary price pressures which were identified in last year’s report have sharpened in the intervening time. These pressures have accelerated due to the war in Ukraine and are likely to have a significant impact on farm incomes this year.
He stated: “2022 is likely to be remembered for significant increases in commodity prices and general inflation. The cost of the three Fs – fuel, fertiliser and feed – began to rise last year and now, following the invasion of Ukraine, the rate of these cost increases has escalated dramatically, with production costs in 2022 set to be much higher.
“While the news on the costs side is quite negative, from the perspective of farmers there are positive developments on the output side, with significantly higher grain, dairy and meat prices now likely in 2022 than would have been forecast even two months ago.
“The key and worrying question for farmers is: Will higher farm output prices cover their higher input costs this year? In any case, crop and dry stock farmers are facing short-term cash flow issues due to having higher costs outlays than normal in the early part of the season. But right now, it is too early to say with confidence quite how the current turmoil in commodity markets will affect Irish farmers’ incomes for 2022.
“Will the current situation in Ukraine have an impact on land prices? It will come down to the duration and overall economic impact as well as the specific impact on input costs and the profitability of the farming sector in Ireland. But if viability and cashflow issues are exacerbated throughout the remainder of 2022 and beyond, it could impact on the prices paid for agricultural land.”