Leitrim average land prices range from €4,000 per acre for poor land to €7,978 for good

SCSI auctioneers and valuers are forecasting that the price of agricultural land nationally will increase by 6% on average this year, mainly due to an expected recovery in milk prices and continuing strong demand from farmers and investors. 

In a major new survey, auctioneers and valuer members of the Society of Chartered Surveyors Ireland (SCSI), operating in the agricultural sales and rental market, say average rental prices in 2024 are expected to increase by 4%.

The survey found that on holdings under 50 acres the average price of an acre of good quality land in Leitrim last year was €7,978 – the least expensive for this land type in Connacht / Ulster - up from €6,140 in 2022.

In Leitrim, the average price of an acre of poor-quality land on holdings less than 50 acres last year was €4,000, up from €3,300 in 2022. 

Meanwhile, the price of an acre of good land in the county on holdings between 50 to 100 acres last year was €5,550, while the price of an acre of good land on holdings over 100 acres was €4,089. The corresponding prices for an acre of poor land were €3,688 and €3,417.

In Munster, average rental prices are expected to rise by 7%, while in Connacht / Ulster, an increase of 6% is forecast. In contrast, SCSI agents expect average land rental prices in Leinster to decrease by 1% this year. In 2023, land rental prices increased strongly in Munster (+23% for grazing only) and (+9% for cereal crops), with relatively minor changes for most land types in Leinster and Connacht/Ulster.

While price increases will continue to be driven by high demand and low supply, SCSI auctioneers and valuers say the growth rate is moderating due to a number of factors, including higher interest rates, poor weather conditions and lower farming returns.

Teagasc is warning that the impact of the adverse weather on agricultural output, production costs and farm incomes is a concern and presents an area of uncertainty for the current production year.

National average non-residential farmland prices ranged from €6,286 per acre for poor quality land – up 13% from €5,564 in 2022 – to €12,308 per acre for good quality land – up 10% from €11,172 the previous year. 

According to the survey of 129 auctioneers and valuers from all over the country, there weren’t any significant changes in the volume of land sold last year compared to 2022, with executor / probate sales providing the main source of farmland sales. 

Auctioneer Gordon Hughes of Gordon Hughes Estate Agents in Ballinamore, said that while demand for land - primarily by dairy farmers - had continued to drive land sales and rental price increases last year, price expectations for 2024 have moderated due to a number of factors. 

“We can see this most readily in the rental market, which reacts more quickly to economic changes in farming. Last year, average rental values increased by just 4.5% across all farming uses despite predictions of double-digit growth similar to that which occurred in 2022. 

“While land values are expected to increase again this year, mainly due to an expected improvement in milk prices and strong interest from farmers and investors, the increases are forecast to be an average of 6%, well down on the double-digit growth recorded last year. On a provincial level, Leinster, Munster and Connacht/Ulster are projected to experience an increase of land values by 4%, 11% and 5%, respectively,” he said. 

Teagasc economist Dr Jason Loughrey said that while milk prices should be higher in 2024, the outlook for the cereals sector remains negative. He highlighted the likely negative impact of recent weather conditions on economic outcomes at the farm level and the uncertainty of the weather conditions for the rest of this production season.

“Milk prices fell by 28% from record levels in 2022 last year. Some improvement in milk prices is evident in the early months of this year. Overall, a 10% increase in milk prices is forecast for 2024 with the average net margin per litre of milk expected to increase from a relatively low-level of approximately 7 cent per litre last year to 12 cent per litre this year, which is closer to the average of the previous decade. 

“Annual average beef prices in 2024 are forecast to be approximately 2% to 3% higher relative to 2023, while the margins on sheep farms are also forecast to increase this year. However, there is particular uncertainty for cattle-rearing farms due to the timing of cattle sales. Average heavy lamb prices are about 18 % higher (year-to-date) than in 2023. While pork prices are currently behind 2023 levels, these prices remain high by historical standards,” he said.