Letting land supply hits a record low
Potato growers paying up to €600/ac and grazing ground trading hands for as high as €350/ac
The supply of letting land has hit a record low and prices have climbed as high as €350/ac for grazing and up to €600/ac for potato ground.
Auctioneers throughout the country have described the supply of letting land as practically non-existent.
Dairy farmers are dominating the letting scene in southern counties and are also moving outside their traditional heartlands in search of land for fodder, zero grazing and replacements.
The amount of new land on the letting market has been declining steadily since 2015 when tax breaks for long-term letting took effect.
Proposed changes in the new CAP are also a factor.
"Landowners are afraid that 2017/18 and 2019 may be regarded as reference years in relation to the new regime of entitlements," said Dundalk auctioneer Raymond Fee.
"If they are not farming the land themselves during one of these reference years, they may be left without entitlements."
However, some analysts are questioning the viability of the current letting rates.