The Sherry FitzGerald Agricultural Land Price Barometer saw a return to more sustainable growth in land prices in 2024 with values rising by 5.4% in 2024 compared to 8.4% and 12.4% in 2023 and 2022 respectively.

The pace of inflation continued to ease in the opening quarter of 2025 with average prices increasing by an annual rate of 3.6%.

This brings the weighted average price of an acre of general farmland to €12,195 in quarter one 2025. This slower pace of growth reflects several challenges experienced by the sector throughout the year.

The Border region led agricultural land value growth with a significant annual increase of 8.8% in the first quarter of 2025 reaching an average of €10,333/ac.

Almost all regions experienced positive growth during the three-month period. The midlands was the only region to witness a decline at a modest 0.7%, bringing its average value to €13,590/ac.

This decline was driven by a decrease in marginal grassland. In the 12 months to quarter one 2025, prime grassland experienced the most significant increase in value at 4.7%, reaching €13,786/ac.

This was closely followed by prime arable land values which grew by 4.0% in quarter one 2025.

Commenting on the market, sales director, Country Homes, Farms & Estates at Sherry Fitzgerald, Philip Guckian said: “The agricultural sector experienced a mixed year in 2024 and is facing several significant challenges in 2025, although it has been a positive start with the weather being favourable.

"These factors suggest that 2025 will present further difficulties for the industry. In addition, the introduction of tariffs by the US has created additional disruption, particularly impacting the highly exposed butter and whiskey export markets."

As mentioned previously, the Sherry FitzGerald Agricultural Land Price Barometer saw land values return to more sustainable growth levels in 2024 with prices rising by 5.4% during the year.

This is compared to growth of 8.4% and 12.4% in 2023 and 2022 respectively.

The slower pace of growth continued in the opening quarter of 2025 with average prices increasing by an annual rate of 3.6%. This brings the weighted average price of an acre of general farmland to €12,195 in quarter one 2025, compared to €11,774 a year earlier.

Slower agricultural land price growth reflects caution among farmers driven by several market headwinds.

Impending decisions on the continuation of the nitrates derogation and the agreement of the Mercosur trade deal between the EU and some South American countries are likely to have caused anxiety for farmers about the future, according to the report.

The weather was also a significant challenge for farmers last year. The Border region led agricultural land value growth with a significant annual increase of 8.8% in the first quarter of 2025, bringing average values to €10,333/ac.

The mid-east, which was the most expensive region with prices at €15,188/ac, saw a 4.5% rise while the mid-west, with the second-highest values at €13,833/ac, recorded growth of 6.5%.

While other regions saw increases, the midlands was an exception, recording a modest 0.7% decrease in average land values to reach €13,590/ac. This decline was attributable to a reduction in marginal grassland.

In the 12 months to quarter one 2025, prime grassland experienced the most significant increase in value at 4.7%, reaching a weighted average of €13,786/ac.

Marginal grassland values witnessed the slowest growth at 1%, bringing the weighted average price to €8,015/ac.

Sherry Fitzgerald has added that the Agricultural Land Price Index has been reweighted historically to reflect the volume of land sold in the State annually as published by the Central Statistics Office (CSO).

Therefore, previously reported land values have now been revised. To ensure that data reflects market activity as accurately as possible, data will be updated on an ongoing basis as CSO land sales data is published, the property firm has stressed.