Land prices rising in Donegal, according to IPAV Farming Report 2021 

Land prices in 2021 have shown  a very discernible uptick across the country at about 10 percent, depending on location, with some choice plots making as much as 20 percent over reserves, according to the IPAV Farming Report launched on Monday by Charlie McConalogue TD, Minister for Agriculture, Food and the Marine.

Keith Anderson MIPAV of Anderson Auctioneers in Donegal town, said, as has been witnessed in previous reports, there was a wide range of prices achieved for land in Co. Donegal. 

‘Smaller 10-15 acres quality plots were achieving up to treble the price of larger ‘farmer farms’.  These larger farms were achieving in the region of €4,000 - €4,500 per acre. 

Those farms that came to market tended to be very limited, he pointed out. Many of the parcels which came to market formed part of an estate which has been left to a number of beneficiaries.

Most farms sold in the south of the county are usually under 40 acres. 

There is good demand from Northern Ireland based clients for lands situated close to coastal areas. Demand will only increase “as banks are practically charging for holding money,” he noted.

He added: “Certain areas in south Donegal with better limestone quality with good access are attracting greater interest - Ballyshannon / Ballintra / Rossnowlagh. Demand here primarily comes from farmers and businessmen. 

According to Buncrana based Dara Furey, MIPAV, supply has been very limited in Donegal and demand remains strong for small parcels of land, especially from the cash buyer. 

“With prices averaging €6,000 per acre and limited supply, he sees managing vendor’s expectation as an ongoing challenge. 

“An interesting sale was a 118 acres hill farm purchased for rewilding purposes for €850,000,” he noted.

He maintains that “Brexit has had little or no effect on land values in Donegal”.

From a national perspective, while the dairy, beef and tillage sectors have experienced significant increases some niche sectors like poultry and pigs experienced real challenges.

Higher input costs arising from spiralling inflation were a prevailing feature of the market with a 100 percent increase in the cost of fertiliser and an eye-watering 250 percent increase in nitrates.

Pat Davitt, IPAV Chief Executive said there are a number of factors impacting the market, new behavioural changes in response to the pandemic, the Green agenda in policy terms, rising inflation  and “the chase for yield.”

“Exiles returning home, the purchase of land by other business owners and the ability to work from home, are all factors increasing competition for the scarce resource that is land, with a lack of supply for both purchase and rental,” he said. 

“And in the period ahead the climate change agenda, the new Common Agricultural Policy will impact, as will the already well imbedded trend of farm sizes increasing with the exodus of many part-time farmers arising from poor margins, will all be central factors influencing the market.”

He said if the strong prices experienced in 2021 are maintained it may prove a difficulty in terms of the availability of land for forestry.