Farmland rental prices increase to 400-500 €/ac
The expected costs for renting plots of land in the coming letting round are 400 to 500 €/ac. Prices like this are already being paid and should become established over the next few months as the rental season begins. However, the lack of leasable land and high prices may not be a feature of the property market west of the Shannon.
Leasehold land is expected to run short in most of the country’s intensive farming regions, given the pressure on dairy farmers to expand their acreage to meet nitrate needs and stock levels.
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This 60 ac farm in Derreen, Scartaglen, is available for five year lease and is well fenced and gated.
Fermoy auctioneer Michael Barry expects very strong prices in the region of €400/ac. “Just as €15,000/ac is the new €10,000/ac in property sales, €400/ac is the new €300/ac in the rental market. Only a very limited amount of land is eligible. I have a very good dual purpose farm of 67ac coming up for rent and I expect to get €400/ac for it,” he said.
Michael also believes that rental prices have an impact on property sales prices. “People buy farms to lease. If you have 100 ac at €400/ac to rent you get €40,000 a year tax-free income, which is much more attractive than putting money in the bank.”
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The sheds at Derreen include a three-column enclosed slatted shed with mats.
In Kilkenny, Castlecomer’s Joe Coogan says dairy farmers are driving up the cost of leasing land as they look for additional land to comply with nitrate regulations.
Neighboring auctioneer Pat Gannon agrees. “Rental will be very expensive, between nitrates and stock rates, dairy farmers will need more land just to stand still, €400-500/ac will be common,” he said, “anything that comes on the market will be shot down upstairs, even a bit far from the main farm.”
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The 60 Ac land at Derreen includes 50 Ac of very good quality soil and 10 Ac of poor quality soil.
West of the Shannon, Gort’s Colm Farrell does not expect such a rise in the price of leasing land in non-dairy areas. “The environmental priorities in the new CAP are having an impact as dam numbers are already being reduced, and there are signs that programs like the Hen Harrier will not offer the rewards they once had,” he said. “There is no incentive for young farmers to lease farms. Here in the west there will not be the same reputation on land as in the dairy lands.”
In Tipperary, Matthew Ryan believes the upcoming cost of leasing land is bad news for arable and beef farmers. “Although both sectors have had a good year, margins have tightened as fertilizer and feed costs have increased. The increase in the cost of leased land is another and they will not be able to compete with dairy operators,” he said
Even if the rental market is not expected to be in full swing until the new year, the price quotations for rental space already on the market give an indication for the future
Joe Coogan is putting two rented farms up for auction in early December. A 75ac interest in Muckalee and Ballyfoyle, 8km from Castlecomer in Co Kilkenny, is being offered on a five year lease basis. The farm is entirely grass-fed, with the possibility of renting accommodation for 100 cattle in a yard as part of the business.
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The 170ac farm for rent at Ballinahinch near Birdhill in Co Tipperary encompasses the finest grazing grounds.
It is offered in three batches of 23ac, 20ac and c30ac. Mr. Coogan expects the apartment to rent between €400 and €450/ac. The auction will take place on Friday 9th December at 3pm at Ballycomey House, Castlecomer.
Across the border in Co Laois, Mr Coogan rents out a 50ac weed farm in Ballymaddock, Abbeyleix. Just over 1 km from town, the roadside depot is well fenced and served by a quality internal road. This will be auctioned at 3pm on Friday 2nd December at Ballycomey House with a target value of €400 and €450/ac.
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A 50ac farm at Ballymaddock, Abbeyleix in Co Laois is listed at €400 and €450/ac.
Raymond Fee manages the letting of a 170ac cattle farm with extensive stables at Ballinahinch near Birdhill in Co Tipperary. Negotiations are ongoing and a price in the region of €400/ac is expected. Closer to his home base, Mr Fee has a large rental house for rent near Dundalk. Suitable for whole plants and weed, he will count on €350 to €400/ac for it.
In Derreen, Scartaglen, Co. Kerry, auctioneer Brendan Mannix handles the rental of a 60ac farm, with or without claims. The recommended rent based on a five-year lease with an option for longer is €15,000 per year or €250/ac.
The land is well fenced and irrigated and in a block of which about 50 ac of very good quality and 10 ac of poor quality are sheds and 50,000 gallons of manure storage.
https://www.independent.ie/business/farming/farm-property/letting-prices-for-farmland-soar-to-400-500ac-42126268.html Farmland rental prices increase to 400-500 €/ac