Agricultural Land - Q1 2022

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News

“Continued Strong Growth in the Agricultural Land Market”

April 21st, 2022

The opening quarter of 2022 saw agricultural land values in Ireland continue to grow steadily. According to the latest data from Sherry FitzGerald Research, agricultural land values nationally, excluding Dublin, rose by 3.2% over the opening quarter of the year. Following this growth, the weighted[i] average price of farmland stood at approximately €10,050 per acre.

In a twelve-month period, values have increased 8.4% nationally. This is the strongest rate of growth recorded over a twelve-month period since the Sherry FitzGerald Agricultural Land Barometer began in 2013.

In the twelve months to the end of Q1 2022, the rise in values has been evident nationwide, with growth in agricultural land values noted across all regions. The Border region recorded price growth of 16%, with the South-East and the South-West recording increases of 12.3% and 9.5% respectively. At the end of the first quarter, values were highest in the Mid-East, standing at approximately €11,550 per acre.

In terms of price performance, all land types recorded strong price growth over a twelve-month period. Prime grassland values increased by 9.5% in the twelve months to the end of the opening quarter, with marginal grassland land recording similarly robust growth of 8.9%. Prime arable land saw solid growth of 7.1% also.

At the end of March 2022, the weighted average price of prime arable land nationally, excluding Dublin, stood at approximately €11,960 per acre. The weighted average price of prime and marginal grassland stood at approximately €11,350 and €6,850 per acre respectively.

Commenting on the national agricultural land market, Philip Guckian, Associate Director, Sherry FitzGerald Country Homes, Farms and Estates, said

“Although it is still early in the year, we are seeing healthy levels of activity in the market. We are also seeing a lot more farms come to market as the weather has improved. However, there is real concern surrounding risings costs, both because of general inflation as well as fallout from the war in Ukraine. Farmers are facing cost increases for fertilisers, feed, and other agricultural products. These increased costs may cause potential buyers to stall if they continue to rise.”

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For any further information, please contact:

Jane Dunne-Terry                                                                                  Philip Guckian

Junior Economist, Researcher                                                               Associate Director

Sherry FitzGerald Group                                                                        Sherry FitzGerald Country Homes,

Ph: 01 237 6300                                                                                       Farms and Estates

                                                                                                                    Ph: 01 237 6308

 

Jill O’Neill

Director of Communication                   

Sherry FitzGerald Group

Ph: 086 252 3277                                                                     

 

Note to Editors:

(1) Founded in 1982, Sherry FitzGerald has grown to become Ireland’s largest firm of estate agents with 100 owned and franchised branches throughout Ireland.

(2)  The Sherry FitzGerald Agricultural Land Price Index is a quarterly index of price performance in the agricultural land market. Over 50 Sherry FitzGerald Countrywide members provided values for different farmland types, namely Prime Arable Cropping Land, Prime Grassland and Marginal Grassland. These values were based on actual sales, or likely achievable sales, in their area in the given quarter. Each region is weighted, and values at the national level, excluding Dublin, are calculated based on the addition of these weights. These weights are based off total value of farmland sold in each region according to the Central Statistics Office (CSO).

(3) For the purpose of this analysis, land defined as ‘all farmland’ combines the activity of ‘prime arable land’, ‘prime grassland’ and ‘marginal grassland’. Prime Arable Land refers to high quality lands suited to tillage or dairying. Prime Grassland refers to high quality permanent pasture, and Marginal Grassland refers to land suitable for summer grazing quality or poorer quality grassland.

 

[i] Due to a historical revision of the Agricultural Land Sales data by the CSO in February 2022, there have been some changes to weights and thus previously reported weighted agricultural land values. Furthermore, the current weights used have been updated to reflect new data released by the CSO.