Westmeath land prices lagging behind investor-driven growth of Meath and Kildare

Land prices in Westmeath over the course of 2022 are likely to remain at the same levels as last year “at a minimum”, the Institute of Professional Auctioneers and Valuers (IPAV) is predicting.

While the absence of indications that dramatic price rises are on the way may be good news for buyers, it is less so for vendors who will look enviously across the border towards neighbouring Meath where land prices have been substantially higher.

In the IPAV Farming Report, Alan Bracken, MIPAV, of SF Davitt and Davitt, says prices for both quality grassland and tillage were achieving in the region of €9,000 per acre in Westmeath last year, with holdings over 90 acres in high demand, mainly due to interest from dairy farmers. Demand for lands to rent, was strong during the year, Alan reveals, adding that average prices in marginal areas remain at €160 to €200 per acre.

Alan expects rental prices to increase this year and believes the price of land in 2022 at a minimum, will remain at the same levels of 2021.

“Stocking rates may cause increase demand for more acreage, pending Cap 2023,” says Alan pointing out, however, that oil, gas prices and fertiliser costs have increased significantly.

“This increase will impact on the income for tillage farmers and as a result the demand may fall in this sector,” he said, adding that technology has created a new platform to allow sales to occur in a safe environment.

Meath and Kildare

In Meath and Kildare, good land was fetching around €12,000 last year according to auctioneers in those counties.

Stephen Barry MIPAV, of Raymond Potterton ascribes the high sale prices partly to scarcity: “Large areas of County Meath saw no land sales at all,” he states in the report.

Prices were in the range of €6,000 for forestry and up to €12,000 for quality grassland and tillage, he states, while John V Farrelly MIPAV of DNG Royal County was seeing average prices for quality farmland stretching up to €14,000 per acre.

“It is apparent that many buyers are not prepared to leave money in the bank as they see land as a good investment,” he said.

A similar view was held by Eamon O'Flaherty FIPAV of SF Brady O'Flaherty in Maynooth who reckoned that “a reduction of up to 50% in the supply of fresh ground coming to market in 2021” helped drive the price of good quality permanent pasture and tillage to in the region of €12,000 per acre. He has seen a lot of interest from non-farmers, viewing land as a secure risk-free investment.

The report reveals that higher input costs arising from spiralling inflation were a prevailing feature of the market with a 100 percent increase in the cost of fertiliser and an eye-watering 250 percent increase in nitrates.

Pat Davitt, IPAV Chief Executive said there are a number of factors impacting the market: new behavioural changes in response to the pandemic, the Green agenda in policy terms, rising inflation  and “the chase for yield”.

“Exiles returning home, the purchase of land by other business owners and the ability to work from home, are all factors increasing competition for the scarce resource that is land, with a lack of supply for both purchase and rental,” he said.

“And in the period ahead the climate change agenda, the new Common Agricultural Policy will impact, as will the already well embedded trend of farm sizes increasing with the exodus of many part-time farmers arising from poor margins, will all be central factors influencing the market.”

He said if the strong prices experienced in 2021 are maintained it may prove a difficulty in terms of the availability of land for forestry.