The average price of an acre of farmland stands at approximately €10,050, according to the latest data from Sherry Fitzgerald.
According to its Agricultural Land Barometer, the opening quarter of 2022 saw agricultural land values continue to grow steadily, with national values – excluding Dublin – rising by 3.2%.
In a 12-month period, values have increased 8.4% nationally. This is the strongest rate of growth recorded over a 12-month period since the land barometer began in 2013, the company said.
In the 12 months to the end of quarter one in 2022, the rise in values has been evident nationwide, with growth in agricultural land values noted across all regions.
The border region recorded price growth of 16%, with the southeast and the southwest recording increases of 12.3% and 9.5%, respectively.
At the end of the first quarter, farmland values were highest in the mideast, standing at approximately €11,550/ac.
In terms of price performance, all land types recorded strong price growth over a 12-month period.
Prime grassland values increased by 9.5% in the 12 months to the end of the opening quarter, with marginal grassland recording similarly robust growth of 8.9%.
Prime arable land saw solid growth of 7.1% also.
At the end of March 2022, the weighted average price of prime arable land nationally, excluding Dublin, stood at approximately €11,960/ac.
The weighted average price of prime and marginal grassland stood at approximately €11,350 and €6,850/ac, respectively.
Commenting on the national agricultural land market, Philip Guckian, associate director, Sherry FitzGerald Country Homes, Farms and Estates, said:
“Although it is still early in the year, we are seeing healthy levels of activity in the market. We are also seeing a lot more farms come to market as the weather has improved.”
However, he warned there is real concern surrounding risings costs, both because of general inflation as well as fallout from the war in Ukraine.
“Farmers are facing cost increases for fertilisers, feed, and other agricultural products. These increased costs may cause potential buyers to stall if they continue to rise,” he said.