'Windfall days are over' as CPO payments plunge
Published 27/07/2010 | 05:00
Payments to farmers for land taken under Compulsory Purchase Orders (CPO) have plunged, farm consultants have warned.
Local authorities have re-assessed valuations following the collapse in development land prices.
As a result, ground adjacent to towns which is being acquired for road development is now being valued at farmland price levels.
This means that property which was worth between €100,000 and €200,000/ac during the boom is now priced at €12,000-15,000/ac.
Farmers have been told by consultants advising on CPO land acquisitions that the "windfall days" were over.
Agricultural consultants negotiating deals on behalf of farmers are also advising clients to conclude negotiations earlier rather than later to secure payment this year.
Westmeath-based agricultural consultant Ned Nagle pointed out that the climate for doing deals with the local authorities had changed completely.