Land prices in 2021 have shown a very discernible uptick across the country at about 10 percent, depending on location, with some choice plots making as much as 20 percent over reserves, according to the IPAV Farming Report launched this week by Charlie McConalogue TD, Minister for Agriculture, Food and the Marine.
However, while the dairy, beef and tillage sectors have experienced significant increases, some niche sectors like poultry and pigs experienced real challenges.
The report added: "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, such as 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 and the new Common Agricultural Policy will impact, as will the already well-imbedded trend of farm sizes increasing with the exodus of many part-time farmers arising from poor margins; these 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.
