Land leasing rates stay at up to €250/ac as supply collapses
A collapse in the volume of land available for short-term leasing will see last year's price levels maintained, auctioneers have claimed.
Estate agents report strong interest for both grassland and tillage lettings, but they maintain that sufficient land to meet demand will not be available.
Between €150/ac and €250/ac is being quoted for grassland, while tillage ground varies from €150/ac to €230/ac.
Up to 80pc of ground that was traditionally available for con-acre and short-term lettings has been converted into long-term agreements over the last few years, auctioneers estimate.
Roscommon estate agent, John Earley, said he usually had around 150 farms to let at this time of the year but close to 100 of these properties were now tied up in long-term leases.
He said the fact that leases of over five years duration were tax free up to a value of €40,000 was a major attraction for land owners.
While Mr Earley accepted that long-term leases weren't "without their hiccups", he said they generally worked well.
They gave security to both the land owner and the farmer and were a better system overall than short-term leases, the Roscommon auctioneer pointed out.