THE RISE OF LAND RENTAL THE AGRICULTURAL LAND RENTAL MARKET WAS THE MAIN DRIVER OF ACTIVITY IN 2019, ACCORDING TO THE SCSI/TEAGASC AGRICULTURAL LAND MARKET REVIEW & OUTLOOK 2020 REPORT.
A
impact
is
yet
s businesses and society reopen to the new normal of Covid-19, the extent of its to
be
fully
Over the lifetime of this joint report since its first introduction in 2013, land values have
assessed.
increased marginally on a rate-per-acre basis and have certainly not witnessed the high
The agricultural sector and its property market
inflationary rates experienced during the Celtic Tiger era. This spike in values during
is not immune to a dampening of consumer
this period is evidenced within a special feature of our 2020 report, which was produced
confidence; however, a reminder of just how
with the assistance of Smith Harrington Auctioneers, who provided average land value
important the agricultural industry is to our
data as far back as 1970 (Figures 2 and 3). This will provide our valuers with a reliable
economy was evidenced when it was defined as
dataset for 1974 Capital Gains Tax valuations.
an “essential service” during the Covid-19 lockdown.
Land rental market
The SCSI/Teagasc Agricultural Land Market
The rental market in Ireland in the past 12 months remains strong even though beef
Review & Outlook 2020 is based on findings from
prices and near drought conditions last year and in 2018 increased costs for farmers.
our SCSI survey, which was conducted
In 2018, across the farm sector, the average family farm income declined by 21%,
nationwide in December and January last.
dropping from €29,774 in 2017 to €23,483, and largely compounded by the extreme and
The survey was completed by our membership
adverse weather conditions experienced. However, average farm incomes increased by
of surveyors, auctioneers and valuers.
up to 7% in 2019, mainly due to increased subsidy payments made to farmers as a response to difficult weather conditions and poor beef prices. According to the joint
National average land values from 1970
report, subsidy payments now account for 59% of agricultural sector income, up from
On a national basis, the average value of
48% in 2018.
agricultural land in 2019 remained generally
According to our report, the continued upward trajectory of land rental values is
static at €9,230 per acre, down marginally from
explained in the increase in farm incomes.
2018. The biggest decline in values occurred in Munster, which recorded a decrease of 9%, compared
with
Connaught/Ulster,
which
recorded a 1% decrease on average (Figure 1).
FEATURE Edward McAuley Head of Practice & Policy, SCSI
28
SURVEYORS JOURNAL Volume 10, Issue 2, Summer 2020
