Ear to the Ground RTE tv

Saw most of this,firstly this figure of 30% drop in house prices seemed to be quoted as fact. Secondly Mark Clinton remember him says the price of agricultural land has halved in two years. A little old lady in the Midlands featured husband was dead. She wanted to sell 38 acres had hoped to achieved €600k was now hoping for €500k.
An auctioneer said last year good land was getting $15k to $20k an acre now it was $10k.
Clinton said comparable land in the UK was about $7-8K USA was about $5K

Just because is a) little b) old and c) a lady

does not mean she is entitled to that 13k an acre.

The only people entitled to anything are FAS executives flying first class.

:smiley: :smiley: :smiley: :smiley: :smiley:

Don’t forget, the buyer gets a free house! :slight_smile:

Giiven the tone of the programmme you might well get a free little old lady :laughing:

I still can’t get my head around why agricultural land is valued at €13,000 per acre. A farmer would be lucky to make €500 per year from acre. 5,000 sounds sensible

7 months ago…

I meant to watch this but got home late. The biggest driver I knew of in agricultural land prices were farmers who had sold land to developers/NRA and looking to reinvest as quick as possible to avail of roll over relief and avoid capital gains tax. The second biggest driver was builders, and I use that term advisedly, because I mean the lads who would actually build houses or at most very small developments investing their profit in an extension to the family farm or buying a farm of their own.

The return on farmland used for agricultural purposes is about 1% p/a.

The ecomonics have become really warped by selling land for housing.
If you haven’t got land to sell for sites or development, then you can’t compete with the farmers that do when it comes to buying more land.

The housing crash will help bring a bit more sanity.

38 acres of Roscommon bog I think it was. Looked like very poor land at best.

She said if she didn’t get the 500k, she’d stay put until she did.

Shes in dream land. I wouldnt pay any more that 4k per acre for that sort of land.

How little and old was she? She may not be able to wait that long in all seriousness.

Roll over relief is long gone. Simply sticking with what they know. Most farmers will remember the collapse in land prices in the 80’s and have purchased land with their eyes wide open as regards falling values - unlike good ol canny. Some of the more imaginative ones invested in bank shares and bank promoted investment products. Capital losses all round.

Half that €500 will be made up of subsidies (REPS and Single Farm Payment). These also helped push up values. The other main factors are the high off farm income that most farmers have either themselves or their partners’, low interest rates and tax free forestry premiums for the poorer quality land.

My mother’s partner is a farmer in North County Dublin. He told me the going rate to rent out land for tillage or grazing is €80 a year per acre.

Poor taste whizzbang

€150 per acre pa as a return from farming land would be considered good.
At €15K an acre that is 1% yield and the farmer has to do a lot of work for it.

Tillage land in the US had risen from $2,000 per acre to $4,000 per acre in the last 7 years, but with the fall in oil prices and lower price for corn/biofuels and the lower availability of credit, the prices are starting to ease back in the US.

We good get to €4K an acre very quick in Ireland for good farm land.

The old lady’s auctioneer was interviewed and he cleared up that little mystery for you. He said they weren’t making any more of it.

I was watching this and I was just waiting for him to come out with that hackneyed line and he duly delivered!!

Conacre prices fall to 2006 levels.

independent.ie/farming/news-features/conacre-prices-to-fall-to-2006-levels-1504146.html

This is a link to a paper dealing with the Irish agri land bubble of the late 70’s early 80’s, only an abstract I’m afraid. erae.oxfordjournals.org/cgi/content/abstract/28/2/95