According to research carried out by Sherry Fitzgerald, agricultural land values have risen by 1.8% in the opening half of the year. This saw the average price of farmland in Ireland, excluding Dublin, increase to just over €9,700 per acre.
Following growth of 0.9% in the second quarter of the year, cumulative price growth for the first half of 2018 rose to 1.8%. In comparison, the opening six months of 2017 saw land values reaching 0.3%. Growth in agricultural land values has been robust for the past year, with prices increasing 3.1% annually to the second quarter 2018. This contrasts with a decline of 1.5% in land values in the twelve months to June 2017.
Head of Sherry FitzGerald Country Homes, Farms and Estates, Roseanne De Vere Hunt, said: “The continued increase in land prices nationally is a positive reflection of the demand in the market at present. However, demand may be tested given the extreme weather conditions this year which have affected farm incomes. This, along with the possibility that a no-deal Brexit may occur, has brought about a greater cautiousness to the agri-land market”.
The research showed that all agricultural land types saw their value rise, with both prime and marginal grassland observing growth of 1.7% in the first six months of the year. Furthermore, on an annual basis, prime and marginal grassland has increased by 3% and 3.2% respectively. On the back of these price gains, the average price of prime grassland nationally, excluding Dublin, was approximately €10,950 per acre, while poorer quality grassland was approximately €6,550. Similarly, prime arable farmland increased by 1.8% in the first half of 2018.