Farm MarketJanuary 2013

Knight Frank

LAND MARKET REVIEWBy Robert J. Ganly, Knight Frank Ireland

Agricultural land prices have increased by 5% nationally for the year 2012, reports Robert Ganly of Knight Frank Ireland, despite last year having been a very difficult one for farming due to the continued bad weather conditions, which negatively impacted farm incomes.

The Knight Frank annual land survey found that far more land came to the market and changed hands successfully than in the previous year, which is highly promising for the Irish farming economy. The report also showed that prices have risen in many parts of Ireland for holdings of all sizes, with the exception of the west, north west and north east.

The Knight Frank annual national survey on agricultural land prices, has found that the average price paid for agricultural land across the entire country in 2012 was €10,586 per acre.

This represents an overall national increase of 5% over the past 12 months, based on the national average price of €10,064 per acre paid in 2011, the first in more than four years to see prices increase nationally. Prices rose throughout Ireland in 2011, with the exception of Dublin and surrounding counties Kildare and Wicklow, the only counties to record a decrease.

However, this year’s Knight Frank Ireland survey shows a complete turnabout for Dublin, Kildare and Wicklow, which recorded the highest increases in the average price of farmland in 2012. The 2012 survey found that the combined Dublin, Kildare and Wicklow region enjoyed a large increase

of 14.3% on the previous year with the average price paid per acre at €12,636, compared to €11,056 in 2011. As would be expected, the region’s prices were the highest on average throughout the country.

When counties Dublin, Kildare and Wicklow were excluded from the national survey, Knight Frank Ireland found that the overall increase in the average price paid for Irish farmland in 2012 stood at a little less but significant 3%. The price paid for agricultural land in the rest of the country averaged at €10,182, compared to €9,877 in 2011

Again, most of the farmland was purchased by farmers. Over the entire country, approximately 12,100 acres changed hands during 2012, compared to the much lower figure of 9,400 acres in the previous year. There were also a significantly higher number of recorded sales with 209 successfully completed in 2012, compared to 161 sales in 2011.

Not only was there a much larger amount of acreage and more sales last year, but the total number of farms and holdings at 562 and the approximate 41,000 acres brought to market in 2012, was much higher than 2011.

This is the 20th annual survey commissioned by Knight Frank Ireland, which is renowned as one of the country’s top specialists in farms, agricultural lands, stud farms, estates and country houses.

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HIGHLIGHTS• The average price paid for agricultural land across the country in 2012 was €10,586 per acre, an increase of 5% on 2011 values. • Dublin, Kildare and Wicklow, recorded the highest increase with an average price per acre of €12,636, an increase of 14.3% on the previous year. • Land sales nationally increased 28% in 2012, with 12,100 acres of farmland being sold. • Knight Frank Ireland are seeing continued strong demand for farmland and are forecasting a further increase in land values of 5% in 2013.

The Knight Frank Ireland 2012 survey findings were based on a total of 562 agricultural land properties advertised of which 209 sales were completed. However, the survey is based on 181 of these transactions, as 28 sale prices were undisclosed and therefore could not be included.

Commenting on this latest agricultural land price survey, Robert Ganly, head of Residential & Country at Knight Frank Ireland, said that “This is very positive news and the outlook is good. An increase of 5% in the national price of farmland is significant and very promising for our farming economy going forward”.

“Perhaps even more encouraging is the fact that this national increase took place in a year when we have endured such bad weather since the beginning of the summer, which has continued all winter, with a poor harvest and farmers now also concerned over their winter crop yields”.

“So an increase in the price of farmland over a poor year is indicative that land values will continue to strengthen. We are also finding that there are a lot of people out there with available money who are anxious to invest in land these days”.

Looking forward, Mr. Ganly believes that the outlook for agriculture land is good and predicts that there will be an increase in land values of an additional 5% in 2013, particularly for large holdings. “Hopefully this positive trend will continue throughout this year and we’ll see a further strengthening of land values”.

Methodology

The survey is based on research by Knight Frank Ireland and from agricultural land sales reported in the main national farming newspapers, the Irish Farmers Journal and the Farming Independent, January – December 2012. The survey covered sales nationally with the country divided into 6 different regions, with each of these then broken down into 4 different size categories.

For the first time this year, Knight Frank Ireland also presented its findings, based on the same properties surveyed, under the separate 4 provinces, Leinster, Munster, Connaught and Ulster. This further confirmed the findings, as sales prices when totalled under the 4 provinces, showed the same national average price of €10,586 per acre.

Land sales of less than 20 acres were generally excluded, as it was deemed that the land had been bought as sites for houses or for investment purposes, rather than for farming use. However, if it was specified in the reported sale that the land had been bought by a farmer, then it was included in the survey.

The 6 Survey Regions:

Dublin/Kildare/Wicklow

There was a large increase, as high as 14.3%, in the price of farmland in the Dublin, Kildare, Wicklow region. The Knight Frank Ireland survey found that the average price paid was €12,636 per acre in 2012, representing a substantial increase from the previous year’s €11,056 per acre.

There were 29 recorded agricultural land sales – an increase of 9 on the 2011 reported sales. Additionally, there were a further 6 sales in this region, however, these have not been included in the figures due to undisclosed sales prices. A total of 7,023 acres came to the market, and of that approximately 1,984 acres were sold.

The average price paid in the 20 to 49 acres category was €12,449 per acre, a good increase when compared to the €11,560 per acre average in 2011. There were 19 sales in this size category. A further 5 sales did take place, but were not included as they sold for undisclosed amounts.

Good prices were achieved throughout this area according to the Knight Frank survey, including those for 32 acres with a derelict cottage on site at Ballymoney, Arklow, Co. Wicklow, and for Boswell, Ashford, Co. Wicklow, on 36 acres with a fine country house and equestrian facilities. Both were sold privately by Knight Frank Ireland.

In the larger category of 50 to 99 acres, the price averaged €10,309 per acre in 2012, which meant that there was very little change from the 2011 average of €10,000 per acre. The survey included 6 sales in this category size. One other sale took place, 86 acres in Co. Kildare, which was not included as the price was undisclosed. Knight Frank Ireland sold Breffini House, Osberstown, Naas, Co. Kildare, a country residence on 59 acres, at auction for €975,000.

The average price increased significantly to €14,115 per acre in the 100 to 199 acres category, where 3 sales took place, compared to the much lower figure of €11,325 per acre paid in 2011.

LAND MARKET REVIEW

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2009 2010 2011 2012

€11,056€12,636

€13,055

€10,920€10,920

The largest sized category of 200 plus acres also saw a significant increase in the average price last year. In 2012 the average price paid was €14,103 per acre, compared to just €10,470 in 2011.

Midlands

This area covers the counties of Meath, Westmeath, Offaly, Longford and Laois. There were 76 reported sales in 2012, well up from the 2011 total of 43 sales, the Knight Frank Ireland survey found. This includes 14 sales successfully completed for undisclosed sums. The average price paid for land in 2012 has increased by 6%, rising to €10,190 per acre from the average price in 2011 of €9,587.

In the 20 to 49 acres category, €10,844 per acre was paid in 2012, up slightly from the previous year’s average of €10,221 per acre. The survey included 41 sales in this category. A further 9 sales took place, but the prices were not disclosed.

Findings of the Knight Frank Ireland survey showed that most of the activity in this category took place in Co. Meath, where there were as many as 33 sales. Knight Frank Ireland sold, prior to auction, 29.2 acres at Merrycourt, Clonee, Co. Meath. Knight Frank also sold a 42-acre residential farm at Freffans, Trim, Co. Meath privately, which has not been included in the survey.

An average price of €8,708 per acre was paid in 2012 in the 50 to 99 acres category, based on the 14 reported sales. This represents a slight decrease from the 2011 average price of €8,963 per acre. However, there were 3 more sales of 72 acres, 71 acres and 61 acres that were not included as the sales prices were undisclosed. Knight Frank Ireland sold 50 acres at Enfield, Co. Meath, at auction for €655,000.

There were 7 reported sales in the 100 to 199 acres category with an average price in 2012 of €10,166 per acre, up from the 2011 average of €9,609. In Co. Westmeath there was an additional sale of 190 acres, which went for an undisclosed sum.

In the 200 plus acres category, there were 2 sales, giving an average of €11,199 per acre. There was also one other sale,

230 acres in Co. Longford that sold for an undisclosed amount, so was not included in the Knight Frank Ireland survey.

South West

The average price in this region, which covers counties Cork, Tipperary, Kerry and Limerick, was much higher for the year with €11,588 per acre paid in 2012, compared to €10,716 per acre in 2011, found the Knight Frank Ireland survey. There were 32 reported sales, with an additional 3 sales not included in the survey because of undisclosed sales prices.

In the 20 to 49 acres category, the average price was €10,580 per acre based on the 11 farms sold. This was well down on the 2011 average price of €13,201 per acre. Two further farms were sold for undisclosed sums, 27.8 acres and 31 acres in Co. Limerick.

The average price paid in the 50 to 99 acres category was well up at €10,456 per acre in 2012, when compared to the figure of €9,951 per acre paid in 2011. There were 13 sales in this category, including Ballyfowloo, Cashel, Co. Tipperary on 82.4 acres with a residence and dairy yard, which was sold by Knight Frank Ireland at auction for €872,000.

In the larger category of 100 to 199 acres where 3 sales were recorded, the average price was found to be €9,649 per acre in 2012, representing a good increase on the 2011 average price of €7,363 per acre. Gurthalougha House, Ballinderry, Nenagh, Co. Tipperary on 136 acres was sold by Knight Frank privately and therefore not included in the Knight Frank Ireland survey.

In the 200 plus acres category there were 3 sales in 2012. As two of these were mountain farms of 704 acres and 282 acres in Co. Kerry, which sold for under an average of €600 per acre, they have not been included in the survey.

The third sale was the Caherduggan Demesne, Co. Cork on 275 acres, a residential farm complete with a 229,000 gallons milk quota, which sold for a figure believed to have been in the region of €4,700,000. This gives an average of €17,000 per acre.

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LAND MARKET REVIEW

2009

€11,318

2010

€8,286

2011 2012

€9,587 €10,190

2009 2011 2012

€10,716€12,447

2010

€7,911

€11,588

South East

There were 30 sales in this region, which covers counties Kilkenny, Wexford, Carlow and Waterford, plus a further 3 sales successfully completed but at undisclosed amounts. The price averaged €10,408 per acre, representing an increase of 7% on the 2011 average price of €9,725 per acre, the Knight Frank Ireland survey found.

In the smallest category of 20 to 49 acres, the average price was €9,935 per acre in 2012. In the previous year, the average price paid was somewhat higher at €10,487 per acre. There were 14 sales included in the survey. A further 2 sales took place, 20 acres in Co. Kilkenny and 42 acres in Co. Wexford, but the prices were not disclosed. One of these was Ramsfort, Gorey, Co. Wexford, on 28 acres, which was sold by Knight Frank Ireland privately.

In the 50 to 99 acres category, farmland sold for €10,468 per acre in 2012. The Knight Frank Ireland survey showed that this is a good increase from the average of €9,796 per acre the region in 2011. Sold for an undisclosed sum were 50 acres in Co. Carlow.

The average price paid in the 100 to 199 acres category was €10,567 per acre in 2012, again representing an increase from 2011, which saw an average price of €7,148 per acre being paid. There were no reported sales in the largest category of 200 plus acres.

Northwest/West

There were 14 reported land sales in 2012 for this region, down on the 22 reported sales for 2011. The region covers counties Donegal, Sligo, Leitrim, Mayo, Roscommon, Galway and Clare. There were no recorded sales for two counties, Donegal and Leitrim.

The average price paid was €7,082 per acre in 2012, compared to €7,148 per acre in 2011, with very little change found from the previous year by the Knight Frank Ireland survey.

In the 20 to 49 acres category the average price was €7,572 per acre in 2012, down on that for 2011 which saw an average price of €8,147 per acre being paid. There were 12 recorded sales in this category. Co. Sligo had just one recorded sale, 30 acres, which sold for an undisclosed amount so was not included in the Knight Frank Ireland survey.

In the larger category of 50 to 99 acres, where 2 sales were recorded, the average price paid was €5,445 per acre in 2012. This represents a decrease from the average price paid in 2011, which was at €6,827 per acre. There were no reported sales in the two larger survey categories of 100 to 199 acres and 200 plus acres.

North East

There were a total of 18 recorded sales in 2012 for this region, which includes counties Louth, Cavan and Monaghan, more than double the figure for the previous year, which saw just 7 recorded farmland sales.

However, the Knight Frank Ireland survey showed that the average price of land in 2012 decreased. The average sale price was found to be €8,262 per acre, which represents a decrease of 11.3% on the 2011 average price of €9,314 per acre.

In the 20 to 49 acres category, 16 sales took place, 13 of which were in Co. Cavan. The average price was down with €9,365 per acre paid in 2012, compared to €11,092 per acre in 2011. There was also the sale of 42 acres in Co. Louth, which went for an undisclosed amount, so was not included in the Knight Frank Ireland survey. Corweelis, Cootehill, Co. Cavan,

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LAND MARKET REVIEW

2009

€10,090

2010

€7,287

2011 2012

€9,725 €10,408

2011 2012

€7,148

2009

€8,210

2010

€5,386€7,082

2009

€13,624

2010

€8,375

2011 2012

€9,314€8,262

a property on 21.5 acres, sold at auction for €170,000. Just one sale took place in the 50-99 acres category, which gave an average of €4,643 per acre in 2012, lower than that for 2011 when the average price achieved was €5,832 per acre. There were no reported sales in the larger survey category of 100 to 199 acres.

In the 200 plus acres category, the average price in 2012 was found to be €6,753 per acre. Rathkenny House, Tullyvin, Cootehill, Co. Cavan, an impressive Georgian residence with a dairy farm, was sold by Knight Frank Ireland privately.

The 4 ProvincesKnight Frank surveyed the same properties by dividing the country into provinces, Leinster, Munster, Connacht and Ulster, the average price comes out the same at €10,586 per acre for 2012. There were over 41,000 acres which were brought to the market and over 12,100 acres which were sold, these resulted from the 562 properties which were brought to the market out of which 209 were sold, 181 have been used in the survey, the rest were sold for undisclosed prices.

Leinster Leinster includes Carlow, Dublin, Kilkenny, Longford, Wexford, Wicklow, Kildare, Laois, Louth, Meath, Offaly and Westmeath. This region saw the most activity in 2012. There were over 20,000 acres brought to the market and over 7,500 acres were sold. As many as 309 properties were put on the market out of which 145 were sold. The average price paid per acre in 2012 in this region was €9,889 per acre, found the Knight Frank Ireland survey.

In the 20-49 acres category, 75 properties were sold in 2012 giving an average of €11,095 per acre. In the larger category of 50-99 acres, 30 properties were sold with an average of €9,622 per acre. The 100-199 acres category had an average of €11,343 per acre, based on the 14 recorded sales. Finally, in the 200 plus acres category, just 3 farms were sold, resulting in an average of €12,239 per acre.

MunsterMunster includes Clare, Cork, Limerick, Waterford, Kerry and Tipperary. In Munster, over 13,850 acres were brought to the market and over 3,500 acres were sold. Of the 168 properties brought to market, 34 were sold. The Knight Frank Ireland survey showed that the average price paid in 2012 in this region was €7,684 per acre.

In the 20-49 acres category, there were 12 sales with an average of €10,257 per acre. The larger category of 50-99 acres, where 15 sales took place, saw an average of €10,295 per acre. Just 4 sales took place in the 100-199 acres category, giving an average of €9,245 per acre. There was one farm sold in the 200 plus acres category with an average of €17,000 per acre. Additionally, 2 mountain farms sold in Co. Kerry, which have not been included in the survey.

ConnachtConnacht includes Galway, Roscommon, Sligo, Leitrim and Mayo. There were no recorded sales in Leitrim in 2012. Out of

over 4,660 acres in the 53 properties brought to the market, only 390 acres in 11 holdings are recorded as having been sold. Findings of the Knight Frank Ireland survey showed that the average price per acre in 2012 for this region was €6,920.

In the 20-49 acres category, 10 sales gave an average of €7,577 per acre. The one recorded sale in the 50-99 acres category resulted in an average as little as €2,549 per acre, bringing down the overall average

UlsterUlster includes Cavan, Monaghan and Donegal. There were no recorded sales in Co Donegal. Over 1,625 acres in 32 properties were brought to the market with 790 acres recorded as having been sold in the 17 sales successfully completed. The Knight Frank Ireland survey showed that the overall average price in 2012 for this region was €8,236 per acre. There were 15 recorded sales in the 20-49 acres category, giving an average of €9,367 per acre, found the Knight Frank Ireland survey. Just one sale was recorded in the 50-99 acres category with an average of €4,643 per acre. There was also just one sale in the 200 plus acres category, where the average was found to be €6,953 per acre.

For further information contact: 01 662 3255

Robert J. Ganly, Knight Frank robert.ganly@ie.knightfrank.com 086 2553 507

Celia Lamb, Knight Frank celia.lamb@ie.knightfrank.com 086 8227 832

Alasdair PritchardUK (Irish Desk)

Charles ErwinNegotiator

Celia LambDivisional Director

Robert GanlyConsultant, Head of Ireland Country

LAND MARKET REVIEW

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a selection of sales from 2012

Milverton Demesne, Co. Dublinon c. 468 acresSold by private treaty

Tinarana, Lough Derg,Ogonnelloe, Co. Clareon c.220 acres Sold by private treaty

Ballyfowloo, Cashel,Co. Tipperaryon c.82 acresSold by public auction

Freff ans, Freff ans Little, Laracor, Trim, Co. Meathon c. 42 acresSold by private treaty

Boswell House, Ashford,Co. Wicklowon c. 36 acresSold by private treaty

Ramsfort, Gorey,Co. Wexfordon c. 28 acresSold by private treaty

Rathkenny House, Tullyvin, Cootehill, Co. Cavanon c. 252 acresSold by private treaty

Gurthalougha, Lough Derg,Ballinderry, Co. Tipperaryon c. 136 acresSold by private treaty

Breffi ni House, Osberstown, Naas, Co. Kildareon c. 59 acresSold by public auction

Merrycourt, Clonee,Co. Meathon c. 29 acresSold by private treaty

Enfi eld, Co. Meathon c.50 acresSold by public auction

Ballymoney, Arklow,Co. Wicklowon c. 32 acresSold by private treaty

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