What were the average tillage land rental charges in 2018?
It will come as no surprise that the highest average price paid for land last year was for potatoes in Leinster.
The Society of Chartered Surveyors Ireland (SCSI) and Teagasc published the ‘Annual Land Market Review and Outlook 2019’ this week and it gave a detailed account of land rental figures for 2018.
Tillage production takes up approximately 7% of the total agricultural land area in this country. The main growing areas are in Leinster and Munster.
In each region the average price paid for land for cereal crops was higher than that paid for grassland – grazing or silage.
Highest average prices paid
As mentioned above potatoes provided the highest average price at €348/ac in Leinster. However, in Munster, “other crops” took the highest average land rental value at €268/ac. Protein crops and oilseed rape would also fit into the “other crops” category.
This may be a sign of the difficult year that was 2018, as many dairy and livestock farmers searched for land to grow crops like maize and beet to combat fodder shortages.
Prices by region
- Cereal crops – €216/ac;
- Potato crops – €348/ac;
- Other crops – €246/ac.
- Cereal crops – €209/ac;
- Potato crops – €230/ac;
- Other crops – €268/ac.
Connaught and Ulster
- Cereal crops – €179/ac;
- Potato crops – €252/ac;
- Other crops – €183/ac.
While much talk around land rental surrounds figures reaching towards €400/ac for grassland, the average prices paid did not reflect this, as can be seen below.
- Grazing/silage (Leinster) – €197/ac;
- Grazing only (Leinster) – €190/ac;
- Grazing/silage (Munster) – €198/ac;
- Grazing only (Munster) – €182/ac;
- Grazing/silage (Connaught) – €160/ac;
- Grazing only (Connaught) – €141/ac.
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.