Dairy farmers driving land sales and rental prices, says Galvin

FARMERS continue to be on the lookout for land in West Cork to comply with environmental guidelines, a report on land prices has found.

The SCSI/Teagasc Agricultural Land Market Review and Outlook Report forecasts that the price of agricultural land prices in Munster will increase by 7% this year.

The chairperson of the Society of Chartered Surveyors Ireland Southern Region is Bandon’s Majella Galvin of DNG Galvin.

Ms Galvin said that demand for land-primarily by dairy farmers – had continued to drive land sales and rental prices increases last year, but price expectations for 2024 have moderated due to a number of factors.

‘One of the features of the market that is emerging is that some dairy farmers have a demand for land to allow them to adjust their stocking rates to ensure they comply with tighter environmental restrictions relating to water quality,’ Ms Galvin told The Southern Star.

In order to comply with nitrates directives, and with some areas facing reduced derogation, this means farmers must reduce their herd or buy more land to comply with EU regulations.

The survey found that on holdings under 50 acres Cork had the third most expensive land in Munster and the sixth most expensive in the country with good quality land going for €15,667 per acre – up from €14,250 in 2022. The price of an acre of poor-quality land in Cork was €7,000.

In Munster, land rental values increased on average by 12% last year following on from a 13% rise in 2022.

It also found the most expensive land in the country last year was in Waterford with good quality land on less than 50 acres fetching an average of €20,000 per acre.

The land with the lowest value was poor quality land in Mayo where the average price for poor quality land on holding over 100 acres was €2,733 per acre.

Meanwhile the price of an acre of good land in the county on holdings between 50 to 100 acres last year was €16,333 while the price of an acre of good land on holdings over 100 acres was €13,000. The corresponding prices for an acre of poor land were €7,325 and €7,500

While dairy farmers are ranked as the number one buyer by 69% of respondents, ‘investors’ now constitute 20% of buyers.

‘This shows there is clearly interest from buyers in acquiring land for forestry or equine purposes, or individuals with a high net worth seeking to diversify their assets by investing in agricultural land,’ Ms Galvin said.

Solar firms have also shown an interest in farm land, seeking long-term leases or to buy outright.