The midlands saw the largest price increase in the value of arable land across Ireland last year, according to the Sherry Fitzgerald Agricultural Land Review 2022.
The price of arable land in the midlands soared by 26%, according to the estate agents’ latest research.
The overall average price per acre for prime arable land was estimated to be €13,014 last year, which was a modest rise of €1,437 on the average price of €11,577 in 2021.
According to Sherry FitzGerald’s research no region in Ireland last year recorded a decline in the value of arable land, which grew by an average 12.4% in 2022 – more than double the 4.8% increase recorded in 2021.
Next to the midlands the mid-west recorded the next highest price increases of 17% while the southwest saw a growth rate of 15%.
The mid-east and the west also recorded double-digit growth with 11% and 10% respectively, but the southeast saw a growth rate of 5% while arable land in the border area reported just 3% growth in values.
According to Sherry Fitzgerald the west was the least expensive region to buy arable land last year with prices in the region of €8,000/ac.
But the mid-east was the most expensive region with the highest prices hitting €14,565/ac.
Prices for land
The latest research suggests that during the fourth quarter (Q4) of 2022 prices for arable land increased by 3.8% nationally – which represented a 1.6% increase from quarter three.
The estate agents said that this was “over triple the growth rate seen in the final quarter of 2021”.
Further analysis shows that the midlands region saw a growth rate of 10.4% in Q4, which was almost double the 5.4% rate recorded in the mid-east of the country.
Meanwhile, other parts of the country also saw strong growth rates with the mid-west reporting growth of 3.7%, the southeast 3.1% and the southwest 1.5% over the quarter.
However, according to Sherry Fitzgerald there was no change in the price of arable land in the border areas or the west of the country.
Looking ahead, the estate agents have warned that “unpredictable” weather because of climate change factors could “hamper the performance of the tillage market” but overall, it expects another strong year.