The price of agricultural land per acre is dependent on the size of the parcel and whether there is a residence as part of the sale.
That’s according to the Agricultural Land Market Review and Outlook Report 2020, released by the Society of Chartered Surveyors Ireland (SCSI). It found that, in general terms, land was more valuable on the east coast of Ireland than the west coast.
In Leinster, land varied in value between €9,826 and €11,695 (100ac+) depending on its size and whether there was a residence on it. In Munster, the range varied between €9,325 and €11,852 (50-100ac+), and in Connaught/Ulster, the range was between €5,721 and €7,480 (50-100ac+).
The average price per acre for farmland sales with no entitlements in 2019. Data source: Agricultural Land Market Review and Outlook Report 2020
Nationally, land prices varied in 2019 between €9,104 (for land parcels of more than 100ac without a residential holding) to €10,782 (for land parcels of below 100ac without a residential holding).
The average price per acre for farmland sales with no entitlements in 2019. Data source: Agricultural Land Market Review and Outlook Report 2020
“Beef prices are having an impact on the value of land. We are not seeing as much demand to take on new land for cattle. This would have driven prices in the past, but the last couple of years have been quiet because of beef,” according to the report.
Presence of a property
For parcels of land smaller than 50ac, the average price value varies between €7,480 in Connaught/Ulster, where the land does not have a residence, to €11,852 in Munster for land with a residence.
This is a very broad spread in values, according to the report, and is “consistent with the spread in values observed in previous years”.
“I’ve sold land at much higher and lower prices than the average. Issues like road frontage, rights of way, the orientation of the land, access to neighbouring fields makes a huge difference to the sale price,” the report stated.
For small parcels of land (below 50ac), the presence of a property makes very little difference to the value of the land.
For small plots, farmers are looking to consolidate their existing holding. They probably already have a house and farm buildings, so it’s the location of the land compared to where they currently operate which is important to them rather than whether there’s a house there.
For larger plots of land, in very general terms, the larger the plot of land, the lower the per-acre value. This again repeats patterns seen in previous years.
On average, land in parcels of more than 100ac were approximately €500/ac less expensive than on parcels between 50 and 100ac.
In Munster and Connaught/Ulster, the presence of a residence made very little difference to the per acre value of the land in larger parcels of more than 100ac. However, in Leinster, the per acre value is almost €2,000 less where there is no residence.
Fluctuated significantly
Land values “fluctuated significantly” between 2018 and 2019, according to the report.
Agents in Leinster reported a decline in prices for smaller parcels of land in the region of 11% to 20% depending on whether there was a premises on the land.
There was little change in prices for parcels of land between 50ac and 100ac; increases were seen for the price of land in parcels of above 100ac.
2019 compared with 2018 – land without a residence. Data source: Agricultural Land Market Review and Outlook Report 2020
In Connaught/Ulster, there was a wider variation in prices. Prices declined for larger parcels of land, but increased for smaller parcels, below 50ac.
However, as one agent in Connaught noted, the variation in price can be dependent on many different issues and it is difficult to chart an average for land which is transacted so rarely.
“It is totally dependent on who is bidding and the scarcity of the land. In some areas, there’s strong competition from neighbouring farmers while in others, only one person is interested,” the agent stated.