Land values boom, but young farmers locked out
Ireland's farmland market is tightening as long-term leasing surges and supply remains low, prompting calls for tax reforms to unlock land for younger farmers.
In a new report with Teagasc, auctioneer, and valuer members of the Society of Chartered Surveyors Ireland (SCSI), say average rental prices in 2025 are expected to increase by 7%.
Auctioneers and valuers also said they expect land values to rise again, primarily due to better milk prices, strong competition among farmers and investors and recent changes to Ireland's Nitrates Action Programme. This follows a 7% increase in land sale prices, which reached €9,900/ac in 2024.
The 2025 Land Market Review and Outlook Report highlighted Central Statistics Office data figures showing that the share of agricultural land sold each year equates to just 0.5% of Ireland's total agricultural area, and this, combined with strong demand for agricultural land, is driving the increase in land prices.
The survey found that in 2024, Waterford has the most expensive land in the country, with good quality land on holdings between 50 and 100 acres fetching an average sales price of €23,500/ac. Mayo had the lowest land sales prices in the country at €3,075/ac of poor-quality land on holdings over 100 acres.
After Waterford, which also had the most expensive land on holdings under 50 acres at €23,000/ac, comes Kildare at €18,680, with Cork in third place at €17,875, just marginally ahead of Tipperary on €17,865.
In Carlow, the average price of good quality land on holdings of less than 50 acres is €17,417/ac, while rounding off the top six places is Meath on €16,890.
Dr Frank Harrington, who chairs the SCSI's Rural Agency Committee and Discipline Lead of Real Estate and Valuations at TU Dublin, said the overwhelming response of survey respondents was that the Government should review the tax treatment of agricultural land to entice more land to the market to support the younger generations of farmers.
'Land mobility continues to remain a significant challenge. Our report highlights that policy changes in taxation and financial incentives may be necessary to encourage more land onto the market for sale. More land on the market would assist younger farmers to enter the market, which could also help improve profitability in farming with a scaling up of food production," he said.
Teagasc economist Dr Jason Loughrey added: 'Research highlights the need for policies that allow for gradual transitions rather than 'abrupt' retirement, especially given the number of farmers who indicate that they never plan to retire."
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