Wednesday 5th March, 2025
Land Price Rises Set to Continue Amid Increasing Competition – Latest IPAV Farm Report
Overall increases in land sale and rental prices continue, according to the annual farm survey by IPAV, the Institute of Professional Auctioneers & Valuers, published on Wednesday (5th March) with some regions expecting growth of 5% to 10% in 2025.
The average price for an acre of agricultural grazing land reached €13,949/ac in 2024, up 8% from €12,840/ac the previous year.
The average price for forestry land rose 7.8% to €6,407 per acre from €5,940 while the average price for letting land by con-acre stood at €268.
Long-term grazing leases averaged €299/ac and tillage came in at €304 per annum per acre.
The report says that a combination of higher farm incomes, a shortage of land and increasing demand from both farmers and investors drove prices. Farmers made their presence felt in the land market, especially in the last quarter, and were happy to go toe-to-toe with business buyers and investors in the auction rooms.
Predictions are that while macroeconomic uncertainties exist, the overall strength of Ireland’s agricultural sector suggests that demand for land will continue to rise. Consequently, land prices are expected to follow suit, with a broad consensus among IPAV members that land prices will remain strong, with some regions expecting growth of 5% to 10%.
Pat Davitt, IPAV’s Chief Executive says supply has been constrained by traditional factors such as farmers wanting to keep land in the family and newer trends such as the movement towards long-term leasing and the increasing footprint of solar farms.
"At the same time competition has intensified with the forthcoming Nitrates Directive, and increasingly land being viewed as a tax efficient vehicle for wealth transfer,” he said. “Beyond that there are of course regional factors that vary across the provinces.”
Addressing forestry he said prices are still rising but the reality is, farmers and investors bear many risks, trees may not reach maturity with exposure to fire and wind damage, “which we saw to devastating effect in the recent storm.”
And he warned that unless some form of subsidy is introduced for the second and further plantations it will be very difficult to encourage farmers and investors to buy into additional forestry.
“Recent storms wrecked many forestry crops and the price paid for timber by sawmills has dropped dramatically due to the availability of so much windblown timber,” he said. This will leave the price of forestry land struggling and will likely cause the government programme of planting trees to come close to standstill, he predicted.
Today’s IPAV Farming Report concludes: In 2024, the Irish land market remained dynamic, with prices driven by supply constraints, strong demand from dairy farmers, high beef and sheep prices, and growing investor interest.
Forecasts suggest that the average dairy farm with a 100-cow herd producing 500,000 litres could generate an income exceeding €100,000, with Teagasc predicting an average dairy farm income of €113,000 in 2025.
Below is the detail from each of the provinces.
MUNSTER
Munster land prices continued to remain high with auctioneers reporting between €12,000 to €20,000 per acre being paid for grazing land. While the overall average comes out at €17,262/ac. some exceptional sales saw farming ground make up to €40,000/ac. It must be remembered that dairying is the backbone of agriculture in Munster and incomes which declined sharply in 2023 rebounded as sharply in 2024. The price of forestry land was much stronger in the province in 2024 than previously and could be bought for €4,500 per acre and €8,500 per acre. On the rental and leasing front, grazing ground was fetching an average of between €280 to €400 per acre, with tillage land making from €300 to €400 per acre.
TOM CROSSE FIPAV - GVM AUCTIONEERS, LIMERICK
Strong prices early in 2024 encouraged many landowners to sell in the latter part of the year, leading to a 35% increase in sale volumes. Among the key factors influencing land prices is increased competition from business buyers, driven by concerns over potential changes in land inheritance tax.
Looking ahead, there is a growing expectation that more land will be leased rather than sold, except in cases involving multiple beneficiaries or significant tax liabilities. Land prices are expected to remain stable or increase slightly over the next year, supported by rising milk prices, softening interest rates, and strong bank support for land purchases.
MICHAEL BRADY MIPAV - BRADY GROUP, CORK
“Weather and poor profitability early in the year influenced volume, sale prices and rental prices. This meant that land was harder to sell before Q3 resulting in an average supply of land on the market. Conacre is dying out as way to lease land and is being replaced by long-term leasing leading to a tightening of supply in the availability of land to rent or buy.
HODNETT FORDE PROPERTY SERVICES – CLONAKILTY, CO. CORK
"The supply of agricultural land for sale in Cork County has been good over the past 12 months. Land for lease has been moderate to good, largely due to the amount of land tied up in long-term agreements. Over the last year, prices have plateaued, influenced by limited supply and the pressure on farmers to expand due to derogation. High milk prices and favourable weather have also played a significant role in determining land values. Looking ahead, we expect land prices in 2025 to remain steady, given the positive outlook for all farming sectors."
JOHN STOKES MIPAV – STOKES & QUIRKE, CLONMEL, CO. TIPPERARY
"Over the past 12 months, we have seen fewer farms coming to market in the county, though certain areas in South Tipperary have achieved exceptionally strong results due to competition from the farming, equine, and non-farming sectors. Leasing remains increasingly popular, driven by favourable tax incentives for landowners. The key factors influencing land prices over the past year have been limited supply, policy changes, stable farm gate prices, and accessible financing. Looking ahead, demand for both leased and purchased land is expected to grow, fuelled by strong market interest and recent changes in derogation and nitrates regulations.
PAT QUIRKE MIPAV – P.F. QUIRKE & CO. LTD, CLONMEL, CO. TIPPERARY
"The supply of land for sale in 2024 remained consistent with previous years, but demand continues to far outstrip supply. We have seen a significant increase in the amount of land available under new leases, largely from farms without a successor and older farmers retiring or cutting back. While the average lease price is €350 per acre, some deals have exceeded €400 per acre. Land prices are being driven upward by strong demand, and unless there are major external shocks, this trend is expected to continue. Competition for scarce supply has been the key factor determining prices, with well-located parcels, particularly those near towns with future development potential, reaching up to €40,000 per acre.
LEINSTER
In 2024 farm sales in Leinster were a tale of two regions. Auctioneers in the northern part of the province report a good supply of land and a lively market whereas auctioneers in the southern counties saw supply remain static or tighten. Traditionally tillage farmers were major players in the Leinster land market, but dairy farmers are undoubtedly in the ascendant along with business buyers, many of whom have a farming background who see land as a solid investment. While a rough overall average price for land in the province comes to €16,259, grazing land made an average of between €13,300 and €20,000 per acre while some headline sales saw land make up to €36,000 per acre. Forestry ground made an average of about €7,000 per acre while the lease price being paid for grazing land averaged between €245 and €400 per acre. Tillage ground commanded, on average, between €275 and €340 per acre.
STEPHEN BARRY MIPAV - RAYMOND POTTERTON AUCTIONEERS, NAVAN, CO. MEATH
"The supply of land for sale in Meath has remained steady over the past 12 months, with an unusually high number of farms of over 100 acres coming to market. Despite this, demand continues to outpace supply. Smaller plots of 10 to 25 acres have seen strong local interest, while larger parcels have attracted both farmers and investors. The rental market has slowed, with much of the available land now tied up in long-term leases due to favourable tax incentives, reducing the number of con acre agreements. Key factors influencing prices include dairy expansion, nitrates regulations, and inheritance reliefs, with investors playing a significant role in the market alongside farmers. Looking ahead, land prices are expected to remain steady with slight increases, as strong farmgate prices and potential changes to agricultural inheritance relief in the upcoming budget may drive further demand.
STEPHEN GUNNE MIPAV – PROPERTY PARTNERS LAURENCE GUNNE, DUNDALK, CO. LOUTH
"The supply of land for sale has increased in 2024 compared to the previous year, with strong demand near the border where several holdings have exceeded €20,000 per acre. In South Armagh and Down, land is reaching £20,000 per acre. The rental market has seen a shift away from conacre towards long-term leasing, driven by weaker conacre rents and tax advantages for leasing. The key factors influencing prices over the past year have been land quality, location—particularly in dairying regions—and investment from the non-farming sector. Looking ahead, land prices are expected to remain stable or rise, provided there are no major shifts in nitrates regulations or milk prices.
DAVID MCDONNELL FIPAV - PROPERTY PARTNERS MCDONNELL, MULLINGAR, CO WESTMEATH
"The land market in Westmeath has been strong in 2024, with a good supply driven mainly by probate sales. Auction success rates have been high, particularly for quality land, while more marginal pieces have taken longer to sell. Notable sales for our firm included the Gaybrook Park estate in Mullingar, which achieved €1.88 million for 110 acres. The rental market has remained stable with larger farmers under nitrates pressure paying higher rates and favouring long-term leases due to tax incentives. Key factors influencing prices include location, proximity to existing larger holdings, and continued demand from non-active farmers benefiting from CAT reliefs. Consolidation, where farmers sell outlying land to buy closer to their main enterprise, is also shaping demand. Looking ahead, land prices are expected to hold steady, with any increases likely for better-quality land.
ANNE CARTON MIPAV - P N O’GORMAN, NEW ROSS, CO. WEXFORD
"The supply of land for sale in South Wexford has seen little increase over the past year, though smaller parcels under 25 acres have sold exceptionally well, with prices ranging from €17,000 to €35,000 per acre. The highest price recorded was €36,000 per acre for a 10-acre roadside holding off the N25 at Ballinaboola, New Ross. The rental market has improved for long leases, with strong demand, particularly for quality grassland in parcels of 60 to 100 acres. Looking ahead, taxation changes were expected to reduce non-farmer activity in the market, but land remains a preferred investment. A lack of supply, similar to the housing market, is likely to keep prices strong, with potential for further increases.
PADDY JORDAN MIPAV – JORDAN AUCTIONEERS, NEWBRIDGE, CO. KILDARE
"The supply of land for sale in Co Kildare has dropped significantly with only around 1,400 acres sold last year compared to 4,500 acres ten years ago in 2013 (Farmers Journal Land Reports). The rental market has also seen a decline in availability, largely due to the popularity of long-term leases over the past decade, which has reduced turnover. Land prices are expected to remain high and may even strengthen in 2025, driven by limited supply and the deep-rooted desire in Ireland to own land. Despite no direct correlation between price and return, demand remains strong, particularly from hobby farmers and successful businesspeople who see land as a secure investment. The perception of land as a ‘safe haven’ asset ensures that prices will stay elevated.
ELLA DUNPHY FIPAV – DNG ELLA DUNPHY, CO. KILKENNY
"In 2024, the volume of land for sale in the Kilkenny hinterland increased compared to the previous year, with prices continuing to rise. Smaller parcels under 40 acres have commanded premium prices due to their affordability for hobby farmers and investors. Dairy farmers remain the primary market drivers, particularly when neighbouring lands become available. While the supply of land for lease has marginally increased, the volume of leased land has declined, with rising costs making additional leasing less attractive. Key factors determining land prices include elevated milk prices, competitive lending rates, the rarity of land coming to market in prime locations, high-quality grassland with road frontage, opportunities for solar leasing, and increasing demand for forestry land. Looking ahead, land prices are expected to remain strong in 2025, supported by predicted farm income growth, particularly in the dairy and tillage sectors. However, climate change may impact farm incomes and could influence land values.
CONNACHT
The ACRES environmental scheme is heavily subscribed in Connacht and combined with long-term leasing means that there is less land making its way to the leasing and sales markets. Much of the land being sold is the subject of executor sales and while the overall average price for farmland in the West is around €10,000/ac transactions saw land make up to €20,000/ac. Grazing land averaged between €8,000 and €12,000 per acre while planting land made from €5,000 to €6,500 per acre. Grazing ground for rent was making between €200 and €300 per acre while tillage ground was making between €200 and €350 per acre.
RE/MAX TEAM EARLEY – CO ROSCOMMON
"Land prices in the Connacht region have been influenced by strong demand from dairy farmers and competitive lending rates. Good-quality farmland commanded higher prices on the sales front while the supply of land for rent has remained steady, with only slight regional variations in rental values. Although demand for both short-term and long-term leases remains strong, overall supply has not increased significantly. Looking ahead, land prices are expected to rise by approximately 5% in 2024, driven by recovering milk prices and continued interest from both farmers and investors. However, future trends will depend on economic conditions, interest rates, and sector-specific profitability, particularly in dairy farming.
ROGER MCCARRICK MIPAV - REA MCCARRICK & SONS, CO. SLIGO
"The supply of land for sale has been very limited over the past year, with tight availability also affecting the rental market. Most new lettings are now structured as 5 to 7-year leases, but overall supply remains constrained. Looking ahead, land prices are expected to rise by 5% to 10% in 2025, driven by strong interest from businesspeople and hobby farmers. The primary factor influencing land prices has been the persistent shortage of supply.
COLM FARRELL MIPAV – COLM FARRELL AUCTIONEERS VALUERS AND ESTATE AGENTS, GORT, CO GALWAY.
"The supply of land for sale in our area has been satisfactory in 2024, with farms typically ranging between 30 and 50 acres. Sellers have included retiring farmers and the estates of deceased farmers, highlighting the ageing demographic of full-time farmers, many of whom are over 60. The rental market has remained steady, though the availability of farms for lease has been low. There is strong interest from young farmers seeking land with livestock facilities to secure herd numbers and farm entitlements. Many farmers remain reluctant to sell inherited family land, opting instead for long-term leasing to preserve ownership for future generations. Demand for quality land remains high, fuelled by investors, expanding dairy farmers, an ageing farmer population, migration trends, and environmental designations. Looking ahead, rising stock prices may drive land prices higher in the coming year, with agricultural returns, capital gains tax, and inheritance tax relief playing key roles.
ULSTER
Most of the auctioneers based in Ulster noticed a slowdown in the supply of land and a market with little movement. Larger established farmers are strong buyers while younger farmers have difficulty entering the market where prices are driven by a combination of supply shortage, increasing prices for milk, sheep and beef and where they are competing with the buying power of farmers with an off-farm income. The average price of land in the province came to €12,625 per acre while prices varied between €10,000 and €15,000 per acre with some sales well exceeding that. Forestry land was making an average of €5,500 per acre varying from €4,000/ac to €7,000 per acre. Rental land was making between €150 to €300 per acre.
RAYMOND SMITH MIPAV – SMITH PROPERTY, CO. CAVAN
"In County Cavan, the supply of agricultural land remains sporadic as farms are often passed down through generations and rarely sold and sales typically occur only once every 20–30 years per holding. While younger farmers are eager to acquire land, they struggle to compete with larger, well-established farmers and businesses willing to pay premium prices. The rental market follows a similar pattern, with many holdings rolling over into long-term tenancies unless circumstances such as probate prompt change. Land with mapped entitlements command high demand, as farmers seek to maximize subsidy claims. Dairy farmers continue to play a dominant role in shaping land values, with their need for additional land ensuring consistent competition, particularly for high-quality holdings. Looking ahead, land prices are expected to remain steady, driven by improved access to finance, strong farmer liquidity, and expanding dairy herds.
KEITH ANDERSON FIPAV – ANDERSON AUCTIONEERS, DONEGAL TOWN, CO. DONEGAL
"In South Donegal, land transactions have been limited in 2024, with most sales involving smaller parcels of 15 to 25 acres. Many vendors are part-time farmers in their 50s who have lost interest due to rising costs and a lack of successors, while probate sales have also contributed to supply. The rental market remains extremely tight, with strong demand but very few farms available for lease. Key factors influencing land prices include affordability, strong interest in limestone-quality land south of Donegal Town, and demand from part-time farmers with a farming background looking to expand or support younger family members. Looking ahead, more farms are expected to come up for sale, particularly those delayed by probate, with demand strongest for parcels up to 30 acres and budgets around €300,000. Beyond this price range, buyers are more limited, though some businessmen are seeking larger farms for investment.
DECLAN WOODS MIPAV – SHERRY FITZGERALD DECLAN WOODS, CO. CAVAN
"The supply of land for sale has declined significantly and is expected to continue shrinking. Similarly, the rental market has tightened, with long-term leases and tax incentives reducing the availability of land for sale or lease. Investors have played a key role in bolstering the market and are likely to continue influencing land values in the future. Land prices are expected to increase moderately over the next 12 months, largely driven by external forces rather than the traditional farming sector.
SONIA HARVEY MIPAV – SHERRY FITZGERALD CONOR MCMANUS, CO. MONAGHAN
"The supply of land for sale has remained stable over the past year, but availability for both sale and lease remains limited. The rental market has seen little new land coming to market, keeping demand high. Strategically located lands near towns have performed particularly well, attracting interest from both investors and larger farmers. Despite challenges such as lower milk prices, tight tillage margins, and difficult weather conditions, the farmland market has remained steady. Rising farming costs have further widened the gap between prime properties and more basic land. Looking ahead, land prices are expected to strengthen, driven by continued supply shortages.