Did tillage land rental charges increase or decrease in 2018?
The majority of rental charges for tillage land decreased in 2018. However, charges for “other crops” saw dramatic increases in Munster, Connaught and Ulster, according to the ‘Annual Land Market Review and Outlook 2019’ which was published by the Society of Chartered Surveyors Ireland (SCSI) and Teagasc this week.
“Other crops” may include forage crops such as maize and beet as well as protein crops and oilseed rape.
Leinster, which saw the highest tillage land rental prices of 2018, also saw a significant decline in prices from 2017.
While rent for land for cereal crops only decreased by 2% in 2018 (to €216/ac), land for potatoes decreased in price by 22% (to €348/ac); as did land for “other crops” (to €246/ac).
- Cereal crops: -2%;
- Potato crops: -22%;
- Other crops: -22%.
Land rental prices for cereal and potato production declined by 26% and 28% respectively from 2017 to 2018 in Munster. However, land rental for “other crops” increased by 27% in the same province.
- Cereal crops: -26%;
- Potato crops: -28%;
- Other crops: +27%.
Connaught and Ulster
The average land rental price for cereal crops in Connaught and Ulster was €179/ac in 2018 – up by 5% on 2017. Figures were not available for potato crops in 2017, so no difference was calculated.
“Other crops” saw a massive increase in land rental prices. The land rental price for these crops went from €80/ac in 2017 to €183/ac in 2018 – a 56% increase.
- Cereal crops: +5%;
- Potato crops: N/A;
- Other crops: +56%.
It should be noted that these figures are averages and factors such as the length of the lease will have an impact on rental prices. Terms of leases will also be different in every scenario.