‘Dairy farms are projected to have a robust 2025 and will continue to significantly influence the demand for both owned and leased land,’ according to SCSI rural agency committee chair Frank Harrington.
Agricultural farmland prices are expected to increase by 6% over the course of this year, driven particularly by dairy farmers, but uncertainty over the impact of US tariffs and Irish exports could temper those increases, a report has found.
According to the Society of Chartered Surveyors Ireland (SCSI)/Teagasc’s annual , land values and land rental costs are expected to rise again this year primarily due to better milk prices as well as strong competition among farmers.
The report found that the average price of non-residential agricultural land in 2024 was €9,907 per acre, an increase of 7% on 2023. Good quality land was fetching on average €13,178 an acre, while poor quality land was seeking on average €6,636 per acre.
Frank Harrington, the chair of the SCSI’s rural agency committee, said land prices are being driven by a continued low supply of land to the market and demand across major sectors for agricultural outputs — including a thriving dairy sector.
In addition, 62% of respondents expect an increase in demand from dairy farmers in 2025 — with just 2% of respondents expecting this demand from dairy farmers to decrease.
While Mr Harrington said there are “several factors” supporting the positive outlook for farmers, the uncertainty created by US tariffs is a cause for concern.
“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.
The most expensive land in the country is located in Waterford, where good quality land on 50 to 100 acres holdings is fetching an average of €23,500 per acre. After Waterford, comes Kildare at €18,680 per acre, with Cork in third place at €17,875 per acre.
The least expensive land is in Mayo, where poor-quality land is selling for an average of €3,075 per acre on holdings over 100 acres.
“Land values are expected to rise again, primarily due to better milk prices, strong competition among farmers and investors, and the EU nitrates directive,” the report said.
“Adjustment to the derogation limits under the nitrates directive may continue to influence farmers in requiring more land to meet lower stocking rate thresholds, which will further increase the demand for land.”
Mr Harrington said the SCSI members were overwhelmingly of the view 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.
“Our report highlights that policy changes in taxation and financial incentives may be necessary to encourage more land onto the market for sale,” he said.
On top of the forecasted increase in land sales prices, rent prices are also expected to increase by 7% nationally this year.
In Munster, average rental prices are expected to rise by 8%. In Leinster and Connacht/Ulster, an increase of 7% is forecast.
Speaking on the outlook for the farming sector in 2025, Teagasc economist Jason Loughrey said strong 2024 improvement in prices for livestock and milk will continue into this year, but 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.”
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