There is likely to be "modest growth" in land prices and rental rates this year, according to a major new report published today (Tuesday, April 28).

Farmland sales and rental prices are forecast to rise by 4% on average in 2026 - which is slighlty behind the national average recorded for both sales and rentals last year.

According to the Annual Agricultural Land Market Review Outlook 2026 report produced by Teagasc and the Society of Chartered Surveyors Ireland (SCSI), the outlook for both farmland sales and rental prices is "more cautious" this year compared to previous years.

It was forecast in the 2025 annual report that the price of agricultural land nationally would increase by 6% on average while average rental prices were expected to increase by 7%.

The authors of the latest report point to "disruptions to energy markets" as a result of the current Middle East conflict and the knock-on impact on fuel and fertiliser prices as some of the key factors behind the more cautious outlook for 2026.

Also driving the more muted outlook this year for both farmland sales and rental prices is the fact that dairy margins are expected "to decline substantially in 2026" while beef sector incomes "are expected to moderate".

However, although national farmland rental values are expected to increase by 4% on average, this may also not be the case in all parts of the country.

The Annual Agricultural Land Market Review Outlook 2026 report highlights that at provincial level rental prices are expected to rise by 3% on average in both Leinster and Munster and in contrast by 5% in Connacht and Ulster.

This year’s annual survey, the 13th in the series, also provides an analysis of Ireland’s agricultural land market performance in 2025.

Farmland values for poor quality and good quality land last year were €6,963 per acre and €14,126 on average, respectively.

While rental values in 2025 rose by 10% on average across all farming uses, the report also details that:

The most expensive land overall was in Wexford, where the average price of an acre of good quality land was €19,226; 

The least expensive land was in Leitrim, where the average price of an acre of poor quality land was €3,772; 

Average 2025 land rental prices increased by 2% in Leinster, 17% in Munster, and 18% in Connacht and Ulster.

Farmland

According to Dr. Frank Harrington, chair of the SCSI’s Rural Agency and Discipline Lead of Real Estate and Valuations at TU Dublin, there is still "strong demand for agricultural land coupled with continued low supply continues to underpin strong prices".

Dr. Harrington says that while 2025 was a strong year overall for the market, this year will be more challenging with increased uncertainty expected to pressure farm profitability.

"The heightened risks and uncertainty are expected to influence land market behaviour, with farmers adopting a more cautious approach to land purchases.”