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NAMA boss welcomes agri boom

It seems as if the current boom in farming hasn't gone unnoticed by the powers that be in NAMA.

Speaking to an Oireachtas committee recently, NAMA boss Brendan McDonagh said the current bounce in farming fortunes was also good news for the property sector.

"With milk production quotas to be phased out from 2015, I note that the strategic blueprint for the agriculture and food sector published last year set a target of 50pc growth in milk production over the next decade," Mr McDonagh told the TDs and Senators.

"The much-improved outlook for agriculture over the medium term is therefore likely to create solid demand for agricultural land," he added.

Undeveloped lands account for 40pc of NAMA's loanbook, Mr McDonagh said.

While some is within, or close to, major centres of population and will be developed in time, he accepted that much of the land would not be developed and would revert to agricultural use.

NAMA, which is now considered one of the world's largest property holding concerns, recently published a list of properties which it hopes to sell before the spring.

The list included farms on the outskirts of Limerick, Dublin, Galway and Cork, as well as near towns such as Dundalk, Maynooth and Clonakilty.

The holdings had been bought for development but are now on the market again as agricultural land.

Land which was sold for €100,000 to €200,000 an acre at the height of the boom is now for sale for €10,000-12,000 an acre.

In some cases the original owners are rumoured to be looking to buy the land back.

Indo Farming