What the going rate to buy an acre of land today.
I know it depends on the type of land it is.
For talk sake we will say good dry land.
Talking € 10,000 for good dry land. Take it from there
The issues are not only the type of land but also where it is. If I recall the latest annual report priced agricultural land somewhere between €8.5K and €10K per acre. The Farmers Journal do an annual report and I think that will be reflected there.
As with all these things it depends on how much anyone is prepared to pay but I think that the above prices are about right.
The going rate for an acre of land, no matter what its quality, is how much the ajoining landowner has saved and can beg, borrow or steal in order to buy it. There is no rational to land prices in this country. Prices are all determined by demand in specific areas.
7 - 9K for bare land of a decent sized farm, productive land
quality of land is important but more important is how interested the neighbours are
all it took for farmers to flash the cash for land was two years of good beef and milk prices , the banks are not lending yet land is sailing up in price yet farmers tell us they are poor
fair play to anyone who can buy land but the yarn about penniless famers is a bit tedious
Banks are lending to farmers. Since the construction bubble burst, farming is about the only industry that they will lend to. Some people would go as far as to say that they are wrecklessly lending to farmers at the current moment and in a small percentage of cases, the money will not be repaid (especially repaid by income from the farm investment).
Spot on there reilig.
My sister works in a bank in Meath and they are throwing money out to farmers based on the weakest of business plans. Little to no futureproofing of the income against the repayments as long as the deeds are thrown in. She is convinced that farm lending is the next bubble to burst over the next 5-10 years with milk prices dictating how it will go. Huge money borrowed this spring to stock ground based on beef prices sustaining but milk seems to be the biggest risk of a real bubble burst.
when you consider how land is making 10 k per acre and the average farmer only makes around 200 euro per acre per year , thats 2% yield , very few banks would be impressed with that kind of return , add in the extremley tight lending enviroment and the only conclusion i can come to is that a sizeable number of farmers are cash buyers and FF to them btw but they all cant be farmers who got windfalls for property during the boom
Regarding land prices they nowhere near reflect the potential profit. It continues to hold an emotional value with the need to have more land being a greater draw that what profit can be made.
It's madness when you think about it really. I walked a lovely farm near us recently. Good land for the area I'm in, offers over €7,500/acre.
I couldn't see how this land could be bought and paid for by itself. ie the twenty acres being paid back soley on the profits from the stock it would take. Am I wrong? Even with existing yard, sheds, machinery used to farm it.
Somebody please prove me wrong so I can convince the OH we can buy it
banks have no truck with emotional attachment so the farmers must have the cash
Yes there is some movement on ment taken on during the boom but huge lending is taking place. The difference being that land is an asset the bank can rely on as being forever in demand.
Where a business premises may lie idle if a business goes under there will always be a que of farmers ready to buy land at top prices so the deeds are very good collateral.