Strong demand for agricultural land but no increase in supply on horizon, says Kildare auctioneer

The Irish agricultural land market in 2025 has been “one of the tightest in years,” according to Jordan Auctioneers’ annual review.

Despite rising borrowing costs, softer commodity prices, and continued uncertainty in farming policy, values remained firm across most regions a resilience underpinned by deep-rooted demand and a chronic shortage of supply.

“There’s always demand for good land that hasn’t changed in a century,” says Clive Kavanagh, Director at Jordan Auctioneers.
“What has changed is the sheer lack of it coming to the open market.”

Between January and November 2025, the volume of land brought to the open market fell by an estimated 10–12% compared with the same period last year.

Long-term leasing continues to divert holdings away from the sale market, with many landowners opting for stable rental returns.

“Leasing has become the default option,” Kavanagh explains. “It suits owners, but it starves the market. When a good block of land comes up for sale, you can be sure there’s a queue waiting.”

This sustained scarcity has ensured that prices remained strong despite a notable drop-in transaction activity. Demand throughout the year was led overwhelmingly by established family farmers, often looking to consolidate or expand.
Institutional or investment-led buyers were again limited.

“Land isn’t a speculative asset to most buyers,” Kavanagh says. “It’s productive, it’s tangible and for many, it’s personal. Most people are only a generation removed from the farm”.

Harvest 2025 delivered strong yields across cereals and grass, but market returns lagged. Barley averaged €160 to €170 per tonne, levels last seen in the mid-1980s. Milk prices fluctuated between 42 to 46 cent per litre, steady but outpaced by rising costs.

“Yields were good, but the cheque at the end wasn’t,” Kavanagh comments.

“Fuel, fertiliser, feed, labour everything is up. Farmers felt that pressure right through the year.”

As 2026 approaches, Jordan Auctioneers sees strong demand but no significant increase in supply on the horizon. Prices for good-quality land are therefore expected to remain steady.

“Unless something happens to bring more land to the market, I don’t see prices softening,” Kavanagh says. “Demand is simply too strong, and good land is too scarce. “

Reflecting on more than twenty years in the sector, he adds: "The first thing many successful business owners buy even when the numbers don’t add up is land. It’s in the Irish DNA. Combine that instinct with ambitious farmers and the enduring appeal of a physical asset, and you get a furnace-like market.”