Agricultural Land Prices

Have been trying to get a handle on just how crazy agricultural land prices got in the heady Tiger days and this is one of the better reports coming from the Farmers Journal in January 2007. Thought I would share it.

IMO, ERO 4,000/acre is reasonable for average land, i.e. land suitable for grazing and hay/silage. That would be based on 20 year revenue generation potential at EURO 200 per acre without subsidies, etc. I am interested to hear if anyone else has studied this or can comment on agricultural land values projections.

farmersjournal.ie/2007/0113/ … erty.shtml

from May 2007 - savills.ie/pdfs/articles/166.pdf [adobe acrobat required]

whatever about house prices agri prices make no sense whatsoever. The mother was telling me a farm of 50 acres with some farm buildings and a house made over €1m. Granted i have no breakdown of the value of the house but it wasnt a mansion by any means but 20k an acre for good farmaland in west limerick seems to be the going rate :angry:

i

GB, many thanks, I think that sums it up nicely. Their figure for return from 1 acre is EURO 150 for farming activities, it will be interesting to see how prices adjust to the new reality. With reduced global demand and a strong EURO vs. Sterling, downward pressure is here and now for agricultural produce and I fear the worst for that industry. There are so many spanking new tractors out there bought with borrowed money it is not funny.

duplex is yer only man… Search his posts on the 'pin and also take a jaunt over to his old blog…

irish-property-bubble.blogspot.com

Almost identical farm sale reported in my local paper here in Westmeath this week, house was an old cottage only good for knocking (site value) + 50 acres in a few divisions which made just over the €mill, not great land by any means either and 5 miles out of town so no “hope value”.

Completely nuts still.

I believe that 2000 euro /acre would be right - putting us in a comparable position to the UK and Europe. Don’t forget that even if an acre returns 150-200 euro, you do need to put in quite a bit of work to get that.

Assuming of course that you are not including for the “lottery ticket” premium that Irish farmland has.

Some of the Agricultural land prices are crazy.

www.daft.ie/1410731
Currently leased at a 0.25% yield.

Economically it can’t be worth more than €15k. 20 times overvalued

That advert doesn’t even give the size of the field!

Size doesn’t matter when you are getting 0.25% pa

Because when you’re farming, it’s the elevated position and views across the countryside that make all the difference! :unamused:

Happy cows make tasty steaks.

Per the attached report from Teagasc, in 2006 the “profit” per hectare for drystock farming was in the region of E600 per hectare or approx. E400 per acre, this is in all cases almost 100% from premium income and income from the faring activity is virtually zero.
As I understand it, premia have been reduced by 10% since 2006 and fixed costs had increased significnatly at least up to this year, most of all I believe that produce prices are declining versus increases annually from 2003 up to 2007.

teagasc.ie/publications/2007 … or2006.pdf

I would tend to agree that E2000 per acre is a more realistic price for agricultural land whereas current prices would seem to be in the 8,000+ range.

Further, it seems plain stupid that close to 100% of farm incomes are from premiums paid for by the taxpayer, but thats jsut me and I come from farming stock as they say.

Jesus wept… XX

I am aware of a farm of land in excess of 100 acres in Co. Kildare on sale for a year or so, asking €30k p.a. offered €20k but
purchaser (professional saleried) who had more than 50% on deposit failed to Bank the deal. Offer on table now is below €10k p.a.

Realtors in the US usually classify farms into:

Arable
Grassland
Woodland

It obviously varies by state and length of growing season but a rough guide is
Arable: $3,000 - $4,000 per acre
Grassland: $2,000 - $3,000 per acre
Woodland: $500 -$1,500 per acre depending on how valuable the timber is.

landsofiowa.com/iowa/index.cfm?d … _id=197691

This one gives a 4% yield

Galway - 70 acres at around E6,000 per acre asking, seems like quite a come down from the heedy days.
independent.ie/farming/prope … 09296.html

Roscommon - 48 acres with a run down house asking 8,300 per acre - reduced to sell you see.
independent.ie/farming/prope … 09295.html

Westmeath - 17 acres scrubland at E30,000 (less than E2,000 per acre)
15 acres “good” land at around E125,000 - 8,300 per acre
independent.ie/farming/prope … 98967.html

Connaught 2009
independent.ie/farming/prope … 99075.html

Still a ways to go me feels.

Leinster 2009 - non commuter belt
independent.ie/farming/prope … 98957.html

Munster 2009 - “the market has bottomed”
independent.ie/farming/prope … 99076.html

Ulster - a market brimming with confidence
independent.ie/farming/prope … 99074.html

Recievership Sale in Cork, have not seen this before. 300 acres
christybuckley.com/ballymacu … nsale.html
Buckley seems to have quite a few holdings for sale.

Another man with allot of land for sale or a poor updating of the website (at the prices I think the former)
mcinerneyproperty.com/newmc/ … sp?catID=5

Heres one that is selling for what it’s worth 76 acres at E17,000 per acre
property.ie/commercial-prope … ord/14595/

Grazing, forestry, and BOG land in Longford for E6,000 per acre
property.ie/commercial-prope … ord/14230/

So prices are sticky it seems with completed sales showing soem reductions but it seems to be sporadic and al long way from the E2,000 - E4,000 real agricultural value discussed here a year ago.

Just wondering what the average prices for agricultural land is so far this year?