What the selling agent hails as a “truly outstanding” roadside farm in Patrickswell, Co. Limerick, extending to circa (c.) 19ac and ideal for all types of farming use including dairying, beef, equestrian or hobby farming, is for sale by private treaty.
The holding at Killonahan enjoys extensive road frontage and may have site potential, subject to planning permission, according to Tom Crosse, group property director at GVM Auctioneers.
“It is excellent quality land and has a truly wonderful location within very easy reach of Croom, Patrickswell, Adare and the nearby motorway,” said Tom.
“Limerick city is also just 15 minutes drive, making this an ideal investment opportunity for any aspiring buyers. Inspection is very highly recommended. Map and full details are available on request.”
The Patrickswell land is guiding at €275,000.
The current market for agricultural land
Tom, who is national chairman of the agri committee of the Institute of Professional Auctioneers and Valuers, gave Agriland insight into the current market for agricultural land.
“The return home of many of our exiles and the purchase of land by other business owners really impacted prices in 2021. While many cannot survive on farm income alone, the opportunities for off-farm income have greatly increased,” Tom said.
“Arising from these trends, auctioneers are reporting a very discernible uptick in land prices right across the country, with some choice plots of land making as much as 20% over the reserves.
“For many years, forestry held a base price for agricultural land. On the prices reported by members, it is difficult to see how much land will be available for forestry going forward,” he said.
“The climate change agenda and its central importance in the new Common Agricultural Policy [CAP] 2023-2027, encouraging farmers to farm in a greener and more sustainable way, with organic farming increasing by as much as five-fold, marks a new era,” Tom contended.
“It will help the viability of small farms since all member states of the EU must ensure from 2023 that income support payments are directed more towards smaller holdings and towards young farmers.
Leasing land long term, has become the only viable option for young farmers hoping to run their own farms according to Tom.
“Unfortunately the stamp duty hike to 7.5% is an additional impediment for such farmers in attempting to purchase land,” he said.
In 2020, the supply of land fell by 25% on the previous year, according to the group property director.
“In 2021 supply increased again by 15-20%. Landowners regained some confidence in the market. Demand was very strong,” he said.
This, Tom contended, was driven primarily by dairy farmers and investors.
“Now in the latter stages of the Omicron crisis, there is clear light at the end of the tunnel. While Brexit did not affect land values, it did create new challenges for certain sectors which had been dependent on the UK for their produce,” he said.
“The beef and dairy sectors were particularly affected. Many exporters are now selling to larger geographical areas across the EU and internationally.
“Interestingly, because of a 20% increase in beef prices in the UK in 2021, in recent months we are now seeing a renewed interest for Irish beef from the UK,” said Tom.
“Like 2019 and 2020, a lack of supply across most land types was evident. This now common theme is unlikely to change and applies to both land to purchase and rent. Several large farms came to market which had been held back in 2021.
“A recent media report confirmed the volume of land sold by auction in 2021 was up 17% on the previous year.
“Land values increased by approximately 10% in 2021, location dependent. Some areas were higher. Average farm sizes continue to increase. The recently published provisional results from the agricultural census 2020 revealed that the number of farms in Ireland has fallen by 3.4% since 2010 to 135,000,” Tom outlined.
This, Tom said, is a clear indicator of the continued exodus of part-time farmers from the industry because of poor margins achievable while operating small holdings.
“Alternative sources of readily available full-time employment are also playing a role. There was a very limited supply of lands to rent and where available, prices were up by as much as 20%,” the group property director contended.
“Farmers are very conscious of the implications of CAP 2023. Herd sizes, carbon credits, emissions, the nitrate review and climate change are all key issues.