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A busier than usual start to the land leasing season has been noted by auctioneers around the country, with prices holding firm on last year.
Prices of between €200/ac and €300/ac for long-term leases are being quoted in the main. The demand is said to be strongest for ‘naked’ land with no entitlements.
Some long-term leases of between five to seven years are now expiring and renewals are reported to be at slightly higher prices.
We have in excess of 30 new leases being negotiated and 17 closed so far this year
“There is a bit of a price increase on renewals of 5% to 10%,” said John Hodnett of Hodnett Forde in Clonakilty, Co Cork.
“We have in excess of 30 new leases being negotiated and 17 closed so far this year.”
Similarly, Pat Gannon in Kilkenny said that he is not seeing some of the real high prices of last year, but “fancy places are going for flashy prices”.
To date this year he says that his highest price was €350/ac but that included entitlements to be returned to the landowner – meaning the net cost would be closer to €200/ac.
“Where long-term leases are being renewed the prices are going up from €200/ac to €230/ac or €250/ac.
“Naked land would be in demand and would draw a premium price,” Gannon said.
John Dawson in Tullow quoted prices of €250/ac to €300/ac for naked land. He said that he believes the market kicked off much earlier this year due to concern about CAP reforms and future budgets.
Places that would have made €280/ac to €300/ac last year are now making €220/ac to €240/ac
In Tipperary, Alison De Vere Hunt in Cashel Mart says that “the hunger is gone” out of the leasing market.
“Places that would have made €280/ac to €300/ac last year are now making €220/ac to €240/ac,” she said.
“The beef farmers are not leasing and the dairy men are more cautious.”
Looking further north, Dillon Murtagh of Murtagh Bros in Mullingar, Co Westmeath, said: “Given all that’s been going on with beef, the leasing market is stronger than expected.”
The availability of the national reserve for young farmers is pushing prices on a bit as well
He says that prices for grazing in Longford would be about €200/ac, €230/ac to €240/ac in Westmeath and up to €250/ac in Offaly.
“The availability of the national reserve for young farmers is pushing prices on a bit as well,” he added.
Meanwhile, further west, the land letting season is just starting to swing into action. Nuala Feeney of Sherry Fitzgerald Feeney West in Mayo said that good land in a good location is making €150/ac.
Brendan Mannix in Castleisland, Co Kerry, says that he is seeing plenty of demand for long-term leases but none have come on the market in his area yet this year.
So far it has been mostly silage lets, with prices of €170/ac achieved for first cut silage.
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