Latest news with #FrankHarrington
Agriland
06-05-2025
- Business
- Agriland
Listen: AgriFocus - how much will an acre of land cost in 2025?
Listen: AgriFocus – how much will an acre of land cost in 2025? May 6, 2025 5:00 pm In this episode of AgriFocus, Agriland editor, Stella Meehan is joined by Dr. Frank Harrington who is chair of the Society of Chartered Surveyors Ireland (SCSI) Rural Agency Committee and discipline lead of Real Estate and Valuations at TU Dublin. Auctioneers and valuers from the SCSI have said that the outlook for the agricultural land market remains strong for 2025 and they are forecasting that the price of agricultural land nationally will increase by 6% on average this year. In a major report with Teagasc, auctioneer and valuer members of SCSI operating in the agricultural sales and rental market, say average rental prices in 2025 are expected to increase by 7%. Dr. Frank Harrington In Munster, average rental prices are expected to rise by 8% while in Leinster and Connacht/Ulster an increase of 7% is forecast. The average price of non-residential agricultural land in 2024 was €9,900/ac, which is an increase of 7%, up from €9,297 in 2023. Dr. Harrington explains that strong commodity prices and limited supply of land coming onto the market are going to continue to drive land prices.
Irish Examiner
06-05-2025
- Business
- Irish Examiner
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."
Agriland
29-04-2025
- Business
- Agriland
Generational renewal: Policy, incentives and cultural shifts needed
Policy reform, financial incentives and cultural shifts are all needed to address the 'complex challenge' of generational renewal in agricultural, a new report has stated. The Annual Agricultural Land Market Review and Outlook 2025 report, published today (Tuesday, April 29), contains a dedicated section on farm succession and generational renewal. The report from the Society of Chartered Surveyors Ireland (SCSI) and Teagasc noted the challenge is further compounded 'due to an ageing cohort of farmers, who are reluctant to transfer land, and for whom financial concerns persist'. The report also highlighted that the average age of farmers is 59 years and just 4.3% are under 35 years. Generational renewal The SCSI survey of auctioneers and valuers found the main reasons for such low land volumes coming to the market for sale relate to cultural, taxation and succession planning issues. Dr. Frank Harrington chair of the SCSI's Rural Agency Committee, said that 'land mobility continues to remain a significant challenge' Many survey respondents believe the government should review the tax treatment of agricultural land to entice more land to the market to support the younger generations of farmers. 'More land on the market would assist younger farmers enter the market which could also help improve profitability in farming with a scaling up of food production. 'The responses to the survey highlight that in the context of an ageing farming demographic, there is a greater likelihood that their land will be made available for long-term leasing rather than being made available on the sales market,' Harrington said. Research has highlighted that adequate pension provision is key and requires long-term planning. The report stated that addressing pension issues and integrating with other tax reforms and land mobility policies should be considered in the effort to improve farm succession rates. It added that collaborative and structured succession models, such as farm partnerships, show promise in overcoming barriers and are crucial for sustainable farm transitions. The report points to the role of older farmers in knowledge transfer and mentoring. '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,' Dr Jason Loughrey, Teagasc economist, said. 'While it appears that young farmers have difficulty in competing in land rental markets, insights from the Teagasc National Farm Survey suggest that a large volume of additional land may become available to land rental markets in the medium-term. 'This may support the prospects for younger farmers in some parts of Ireland. However, the availability of medium-sized and large plots of land will remain important for younger farmers in regions where dairy and tillage farming are most prevalent. 'We need to put the structures in place now to facilitate this type of land market activity,' he said. The government-appointed Commission on Generational Renewal in Farming is due to present its report by the end of June. Agricultural outlook Meanwhile, the Annual Agricultural Land Market Review and Outlook 2025 also highlights how the strong improvement in output prices for livestock and milk which emerged in 2024 is continuing into this year. Dr. Jason Loughrey estimated that the average net margin per litre of milk produced increased by 84% to 13.3c/L last year. 'Prices were higher in the first quarter of 2025 compared to the first quarter of 2024. 'This year, beef prices have reached record levels and were approximately 40% above the average for the first quarter of last year. So far this year lamb prices are up 19%,' the economist said. 'However, the introduction of new tariffs on exports to the US is adding uncertainty for both the short and medium term. 'Exports of Irish butter to the US have grown rapidly in recent years and this market may become less lucrative given the imposition of 10% tariffs with the possibility that additional tariffs may be imposed,' he warned. Dr Loughrey noted that aside from the impact of tariffs, the prospect of a trade war is also affecting exchange rates and global economic growth prospects. 'Having been close to parity with the Euro in January 2025, the US dollar has since weakened in value. 'This has negative implications for the euro value of Irish agri-food exports traded in dollars and positive implications for the cost in euro terms of imports of key agricultural inputs such as feed, fertiliser and energy, which are also traded in dollars,' he said.
RTÉ News
29-04-2025
- Business
- RTÉ News
Low supply among issues driving up price of farmland
Low supply, increasing demand from dairy farmers as well as issues around succession were the main factors driving up the price of agricultural land last year, according to a report. The study, from the Society of Chartered Surveyors Ireland (SCSI) and Teagasc, indicates the average price of agricultural land rose by 7% between 2023 and 2024, to €9,907 per acre. It found the most expensive land is in Co Waterford, where good quality land on 50 to 100 acre holdings is fetching an average of €23,500 per acre. The least expensive land is in Co Mayo, where poor quality land is selling for an average of €3,075 per acre on holdings over 100 acres. The report notes that data from the Central Statistics Office shows the share of agricultural land sold annually is only around 0.5% of all agricultural area and says this, combined with strong demand is fueling the increase in land prices. The survey of 169 auctioneers and valuers from all over the country, which took place in February and March of this year, also found the volume of farm land going to market increased marginally during 2024, with probate sales continuing to provide the main source of farmland sales. According to the report, land values - for sale and rent - are expected to rise again this year primarily due to better milk prices, strong competition among farmers and investors, and recent changes to Ireland's Nitrates Action Programme. Due to the latter, it said some farmers require more land to meet lower stocking rate thresholds, which further increases the demand, especially among dairy farmers. However, the research said although agricultural food prices are strong, there is uncertainty in dairy markets in particular over the impact of higher tariffs on produce being exported to the US. Overall, it forecasts that average agricultural land sale prices will rise by 6% in 2025, with a 7% increase for rental prices. Succession planning, it said, is contributing to low land volumes The report also focuses on farm succession and generational renewal, noting the farming sector comprises of an ageing workforce, with an average age of 59 and only 4.3% of them under 35. Responses from the SCSI survey indicated the main reasons for such low land volumes coming to the market for sale relate to culture, taxation and succession planning issues. Chair of the SCSI's Rural Agency Committee Dr Frank Harrington said the overwhelming response of survey respondents was the Government should review the tax treatment of agricultural land to entice more land to the market to support the younger generations of farmers. He said: "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 enter the market which could also help improve profitability in farming with a scaling up of food production." Dr Harrington said responses to the survey "highlight that in the context of an ageing farming demographic, there is a greater likelihood that their land will be made available for long-term leasing rather than being made available on the sales market". Commenting on strong output prices for livestock and milk, Teagasc economist Dr Jason Loughrey said: "Last year, we saw strong price growth for milk - up 16%- and lamb, up 18%. "On average, dairy farms and sheep farms recovered from a difficult 2023." He said cattle prices were "also up 4.5% compared to 2023 while the picture for pigs and cereals was more mixed". "At the same time, overall input prices decreased with lower prices for significant inputs such as feed and fertiliser in particular," he added. Mr Loughrey said that it is estimated that "the average net margin per litre of milk produced increased by 84% to 13.3 cent per litre last year". He said "prices were higher in the first quarter of 2025 compared to the first quarter of 2024". "This year, beef prices have reached record levels and were approximately 40% above the average for the first quarter of last year," he said, adding "so far this year, lamb prices are up 19%". However, Mr Loughrey said the introduction of new tariffs on exports to the US "is adding uncertainty for both the short and medium term". "Exports of Irish butter to the US have grown rapidly in recent years and this market may become less lucrative given the imposition of 10% tariffs with the possibility that additional tariffs may be imposed," he said.
Irish Times
29-04-2025
- Business
- Irish Times
Expected farmland price rises could be tempered by US tariffs this year
The cost of agricultural land in Ireland is forecast to rise by 6 per cent this year, as increased demand from the resurgent dairy sector is expected to outstrip supply, says a report that also warns, though, that US import tariffs could 'temper' that increase. The report, by state agency Teagasc and the Society of Chartered Surveyors Ireland (SCSI), also forecasts that rental prices could increase by 7 per cent this year. While better milk prices are expected to drive demand for land, that will be encouraged by recent changes to Ireland's Nitrates Action Programme – which will require some farmers to increase their land size to meet lower stocking rate thresholds – say SCSI auctioneers and valuers. 'Dairy farms are projected to have a robust 2025 and will continue to significantly influence the demand for both owned and leased land,' Frank Harrington, chair of the SCSI's rural agency committee, said. READ MORE 'Over three quarter of respondents to our survey (77 per cent) ranked dairy farmers as the main buyer type of agricultural land,' he also said, pointing to 62 per cent of respondents expecting an increase in demand from dairy farmers in 2025. However, Mr Harrington pointed to 'uncertainty in the global economy' and US import tariffs on European Union agricultural products, which are casting a 'long shadow' on the market. 'While it's impossible to predict the outcome and potential impact, it's clear these factors could introduce volatility into the land market and may temper some of the upward price momentum,' he said. Last year, the national average price for good quality land grew by 7 per cent to €13,178 and poor quality land prices grew to €6,636 per acre, up 6 per cent. The report found that the national average value of non-residential farmland in the State now stands at €9,907 an acre, an annual increase of 7 per cent. A 'significant variation' in farmland values exists across the provinces, the report says, with an average price per acre of €11,809 in Leinster, just ahead of Munster which had an average price of €11,120. In Connacht/Ulster, however, there is an average price of just €6,792 an acre. The most expensive land was in Waterford, where good quality land on holdings between 50 and 100 acres rose to an average sales price of €23,500 an acre. Mayo recorded the lowest land sales prices in the State where poor-quality land on plots larger than 100 acres stood at €3,075. The low supply of land was found to be one of the main factors behind the price rises, which in turn are being driven by succession planning issues in the 'ageing' farming workforce. The average age of farmers has risen to 59 years and the report found only 4.3 per cent were under 35 years. The report gave a positive outlook for the agricultural sector as the improvement of output prices for livestock and milk which began in 2024 has continued into this year. Following a challenging 2023, strong price increases for milk and lamb were met with decreased input costs last year, Teagasc economist Jason Loughrey said. This trend has continued into 2025, he said, but he warned that the weakening of the US dollar relative to the euro had 'negative implications' for exports. The exchange shifts could, he said, have 'positive implications' for imports of key agricultural inputs such as feed, fertiliser and energy.
