Mayo second most expensive for good agri-land in Connacht / Ulster

MAYO has the second most expensive land in Connacht / Ulster - but also the least expensive poor land in the country, a new survey has found.

SCSI auctioneers and valuers say the outlook for the agricultural land market remains strong for 2025 and are forecasting that the price of agricultural land nationally will increase by 6% on average this year.

In a major new report with Teagasc, auctioneer and valuer members of the Society of Chartered Surveyors Ireland (SCSI) say average rental prices in Connacht / Ulster and in Leinster are expected to increase by 7%.

The survey found that on holdings under 50 acres the price of an acre of good quality land in Mayo last year was €10,600. Although this was down on the 2023 figure of €10,850, it is the second most expensive land in the region, just ahead of Galway and Monaghan, but well behind Donegal on €13,280.

The survey found the most expensive land in the country last year was in Waterford with good quality land on holdings between 50 and 100 acres fetching an average sales price of €23,500 per acre.

Mayo has the lowest land sales prices in the country at €3,075 for an acre of poor-quality land on holdings over 100 acres.

In Connacht/Ulster, sales prices for good land on holdings under 50 acres ranged from the high of €13,280 per acre in Donegal to €7,625 in Leitrim. Prices for poor quality land ranged from an average of €6,500 in Cavan to €3,792 per acre in Leitrim, the lowest price in the country for holdings under 50 acres. The price of an acre of poor-quality land on holdings under 50 acres in Mayo last year was €3,940.

Meanwhile the price of an acre of good land in Mayo on holdings between 50 to 100 acres last year was €8,080 while the price of an acre of good land on holdings over 100 acres was €4,625. The corresponding prices for an acre of poor land were €3,630 and as noted above €3,075.

Land values are expected to rise again this year primarily due to better milk prices, strong competition among farmers and investors and recent changes to Ireland’s Nitrates Action Programme. Due to the latter, some farmers require more land to meet lower stocking rate thresholds, which further increases the demand, especially among dairy farmers.

According to the Society of Chartered Surveyors Ireland / Teagasc Agricultural Land Market Review and Outlook Report 2025, the Central Statistics Office data shows that the share of agricultural land which transacts for sale annually is only around 0.5% of agricultural area and this, combined with strong demand for agricultural land, is driving the increase in land prices.

Gerard O’Toole of O’Toole & Co. in Westport, who is vice-president of the SCSI, says land prices are being driven by a continued low supply of land to the market and demand across major sectors for agricultural outputs including a thriving dairy sector.

“Dairy farms are projected to have a robust 2025 and will continue to significantly influence the demand for both owned and leased land. Over three quarter of respondents to our survey (77%) ranked dairy farmers as the main buyer type of agricultural land. In addition, 62% of respondents expect an increase in demand from dairy farmers in 2025, with just 2% of respondents expecting this demand from dairy farmers to decrease.

“But there are also several other factors which are supporting the positive outlook. After a poor start, last year’s weather improved, and as a result crop yields performed better than expected. We have also seen a marked reduction in interest rates, which of course means lower finance costs.

That said uncertainty in the global economy, along with recently imposed U.S. tariffs on EU agricultural products are casting a long shadow. While it’s impossible to predict the outcome and potential impact, it’s clear these factors could introduce volatility into the land market and may temper some of the upward price momentum.”

Mr. O’Toole said one noticeable trend survey respondents picked up on is a significant landowner shift towards long-term leasing over short-term rentals.

As the market continues to evolve, we believe long-term leasing will remain the preferred model, supported by government policies that encourage security of tenure and investment in land productivity. As a result, nearly 84% of survey respondents noted that farmers would typically pay more per acre for similar quality land on a long-term lease compared to conacre.”

The full report is available at here.