Farmland prices soar across Down District

Farmland prices soar across Down District

26 March 2014

FARM sales are booming with new figures showing record-breaking sales over the past 12 months.

A survey published by the Irish Farmers’ Journal shows that 57 farms were sold in Down last year, which is almost twice the number of farms sold in other counties.

The startling figure, which reflects a recent upturn in the farming industry due to ideal summer and autumn weather, relates to 1,840 acres of land sold for an average price of £8,954 per acre.

Almost 900 acres of this land were in Down District where there was an average price of £7,526 per acre.

The report indicates that a 38-acre farm on the outskirts of Downpatrick made £8,421 an acre, while the best prices were achieved in Castlewellan where small blocks of seven and 16 acres made £11,429 and £12,003 per acre.

The best overall price recorded was for a 25-acre arable farm in mid-Down where £14,200 per acre was achieved.

Although the report indicates that the average price per acre is down by £184 since the previous year, 20 of the sales, made mostly to other farmers, were above £10,000 per acre.

Saintfield man Tom Morrow, who carried out the research for the Irish Farmers’ Journal, said farmland across the district was selling well.

“Auctioneers and estate agents say that while house and commercial property sales remain slow, the market for farmland is good and there is active competition for the land that comes to market,” he said.

“For farmers, 2013 was a year of two halves. After serious snowfalls and persistent cold upset the plans for an early spring turnout of livestock and widespread fodder shortages developed, the year was transformed by ideal summer and autumn weather.”

Mr. Morrow said farm incomes had also recently improved, particularly in the dairy sector where prices had increased to 30 pence per litre last April with a further increase of up to 34 pence per litre as the year progressed.

Saintfield sheep farmer Crosby Cleland said he believed the market was buoyant because prices were now more realistic than they had been.

He said he believed “rock bottom” prices were now attractive when compared to the “ridiculous” land prices of 2007, while dairy farmers, who were enjoying good conditions, could afford to invest in expansion programmes.

Local dairy farmer James Kirk said he believed most of the farms sold were smallholdings that were most likely purchased with money made during the property boom.