REVEALED: The dearest and cheapest farmland in Ireland by county

The most expensive average price for farmland in the country last year was in Co Waterford, where the best quality land cost €20,000 per acre, a new report reveals.

Figures from the Society of Chartered Surveyors of Ireland (SCSI) and Teagasc found the most expensive land in the country is in Waterford with good quality land on less than 50 acres fetching an average of €20,000 per acre, with similar land in Leitrim costing €7,978.

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

According to this year’s survey, after Waterford, the most expensive land on small holdings is in Tipperary, followed by Kildare, which had the most expensive land last year.

The average price of good quality land on holdings of less than 50 acres in Tipperary is €17,539 per acre, followed by Kildare on €16,400. Meath on €16,225, Carlow on €15,750 and Cork on €15,667 round off the top six places.  

In Munster, prices for good quality land on holdings under 50 acres range from Waterford’s €20,000 to €9,500 in Clare. Prices for poor quality land ranged from an average of €7,600 in Tipperary to €5,375 in Clare.   

In Leinster prices for good land in 2023 on holdings of less than 50 acres range from Kildare’s high of €16,400 – up from €15,333 the previous year – to €11,750 in Offaly, while the prices for poor-quality land range from a high of €9,600 in Kildare to €6,583 in Longford.    

In Connacht/Ulster, prices for good land on holdings under 50 acres ranged from an average of €13,400 per acre in Donegal – up from €12,143 in 2022 – to €7,978 in Leitrim, up from €6,140 the previous year. Prices for poor quality land ranged from an average of €7,750 in Monaghan to €3,833 in Mayo, the lowest price in the country for holdings under 50 acres.   

Peter Murtagh, Chair of the SCSI’s Rural Agency Committee, said that while demand for land – primarily by dairy farmers – had continued to drive land sales and rental prices increases last year, price expectations for 2024 have moderated due to a number of factors. 

“We can see this most readily in the rental market which reacts more quickly to economic changes in farming.   Last year average rental values increased by just 4.5% across all farming uses despite predictions of double-digit growth similar to that which occurred in 2022. These increases did not materialise due in the main to poorer overall returns in farming and very poor weather conditions which dampened demand from some farming sectors – particularly in Leinster and Connacht / Ulster – and kept a lid on rental inflation,” he said.

“In Munster, which has a higher prevalence of dairy, rental values increased by over 12%. 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.

“Last year was a very poor one for tillage farmers and with the very poor weather continuing well into 2024, auctioneers and valuers are forecasting a modest average national increase in rental values of just 4% this year, ranging from a 7% increase in Munster to a decrease of 1% in Leinster. Rents in Connacht / Ulster are expected to increase by 6%. 

“While land values are expected to increase again this year, mainly due to an expected improvement in milk prices and strong interest from farmers and investors, the increases are forecast to be an average of 6%, well down on the double-digit growth recorded last year. On a provincial level Leinster, Munster and Connacht/Ulster are projected to experience an increase of land values by 4%, 11% and 5% respectively. 

“Last year over a third of respondents to our survey expected a significant increase in dairy farmers buying land, now 12 months on, that figure has fallen to just 3% of respondents. In addition to the lower milk prices we saw last year, one of the other factors which SCSI auctioneers and valuers referenced was the impact of higher interest rates, particularly on smaller farms that came to the market as buyers are more likely to avail of borrowed funds for these types of holdings in contrast to those purchasing large farms. 

“While dairy farmers are ranked as the number one buyer by 69% of respondents, it is interesting to see that ‘other’, which could also be categorised as ‘investor’, constitutes 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” Mr Murtagh said.