Land prices may be unaffected by Covid-19
WHAT impact might the Covid-19 crisis have on the agricultural land market in County Wicklow?
That’s the question that many farmers who were looking to buy or sell land may be considering at this time.
Late spring and early summer is a popular time to place land on the market across the country, but could the current crisis change this?
Clive Kavanagh of Jordan Auctioneers, which deals with some land sales in the Garden County, suggests that the agricultural land market in 2020 may cope better than expected with any shocks caused by the current Covid-19 crisis.
In an analysis piece, he said, ‘usually at this time of the year there is a noticeable pickup in properties offered for sale, particularly farms and country properties. Spring and early summer is generally one of the most strategic times to bring such assets to the market, taking advantage of the longer evenings, improvement in ground conditions and a more general upbeat mood after a long winter.
‘We have a good supply of land coming to the market in 2020, as have many of our colleagues in the business, however since the restrictions came into effect vendors have been phoning us looking for our advice and opinion in terms of sales strategy and timing in view of the current situation.
‘It is our opinion that if by the end of May business activity is up and running, then that will enable plans to be made for a sale this year and it may in effect lengthen the traditional selling season due to a later than normal commencement of advertising.’
While the economy may take a hit, Mr Kavanagh states that the land market has not suffered the same shocks in the last decade as other types of investments.
‘ There is little doubt that the economic climate has some impact on general land prices and sales, but our experience has shown that this is minimal and far different to those at force within other segments of the property market.‘
He suggests that the agricultural land market in County Wicklow and across Ireland relies on other factors which are independent of value. These include the limited supply of available agricultural land, emotion, demand for forestry and expansion.
‘ There will be headlines over the next few months of properties not being sold or withdrawn at auction but every year that is the situation with a certain volume of stock and while it may feed into a certain newsfeed all decisions will need to be carefully made with proper advice.
‘It is our opinion that values will generally remain... at a relatively stable level throughout 2020. Some vendors will hold off selling due to lack of market confidence and that will further reduce supply and result in good prices for those that are offered for sale. A key issue will be access to finance and the various lending institutions remaining active.
‘Agricultural land in Ireland will always be traded and in demand due to our emotional affiliation and inbuilt desire to acquire it. Farmers remain hugely ambitious to make ventures viable and to expand their enterprises where possible and the famous line of ‘ they can’t make any more of it’ springs to mind as we wait with bated breath to see how the year develops.’
SHEEP SALES - APRIL 28: A bigger sale of sheep today with spring lambs and hoggets back €5 per head on last week. Trade remaining stead for all other classes.
Spring lambs €120 to €135 or €80 to €85; fat hoggets €118 to €130 or €70 to €85; store hoggets €70 to €110; fat ewes €124 to €137; store ewes €60 to €115; Suffolk Ewe Hoggets up to €150 per head.
CATTLE SALES - APRIL 30: Similar size sale to last week with a complete clearance. Grass buyers again making up a large part of customers at the Mart. Trade largely unchanged from last week.
Beef bullocks over 600kg, €550 to €720; forward store bullocks over 500kg €450 to €650; store bullock over 400kg, €420 to €555 over €/kg; store bullock over 300kg, €400 to €535; beef heifers over 500kg, €550 to €705; store heifers over 400kg, €420 to €560 over €/kg.
SUCKLER AND DRY COW SALE - APRIL 24: 100 Head on offer, including 70 dry cows and 30 sucklers. Dry cows were improved by €30-50/head on last week with stronger demand for both beef and store cows. Cows with calves at foot met a good demand with quality lots selling up to €1600.
Prices: 1 Limousin Cow 804kg @ €1,180; 1 PTX Cow 640kg @ €1,605; 2 Limousin Cow 660kg @ €980; 2 Limousin Cow 550kg @ €877; 8 Friesian Cow 616kg @ €760; 3 Friesian Cow 580kg @ €702; 5 Friesian Cow 502kg @ €685; 2 Charolais cows 710kg @ €1,105; 3 Friesian Cow 502kg @ €575; 2 Friesian Cow 446kg @ €535. Cows and calves At Foot @ €850 to €1,600.
CATTLE SALE - APRIL 25: An entry of 482 head saw a stronger demand for all types with more buyers looking for both beef and store cattle leading to a general improvement of 10-15 cent/kg on all prices and a full clearance of all stock on offer.
Bullocks: 1 Limousin BK 710kg @ €1,500; 3 AA BK 760kg @ €1,435; 2 Limousin BK 616kg @ €1,260; 5 Charolais BK 418kg @ €1,080; 3 Limousin BK 419kg @ €1,115; 2 Charolais BK 465kg @ €1,125; 4 Limousin BK 29 kg @ €805; 2 Charolais BK 634kg @ €1,260; 4 HD BK 517kg @ €1,137; 5 HD BK 530Kg @ €1,166; 2 HD BK 324kg @ €625; 4 Friesian BK 415kg @ €694; 6 Friesian 309kg @ €452; 3 Friesian 331kg @ €510.
Heifers: 1 Charolais HF 635kg @ €1,440; 2 AA HF 583kg @ €1,166; 1 Belgian Blue HF 655kg @ €1,356; 1 Charolais HF 600kg @ €1,325; 3 HD HF 400kg @ €850; 6 Charolais HF 507kg @ €1,188; 4 Charolais HF 460kg @ €1,030; 5 AA HF 517kg @ €1,042; 4 Limousin HF 282kg @ €645; 6 AA HF 254kg @ €540; 2 Charolais HF 523kg @ €1,104; 2 Charolais HF 481kg @ €1,017; 4 AA HF 412kg @ €849; 7 Limousin HF 275kg @ €682.
Bulls: 2 PTX bulls 385kg @ €642; 2 Limousin bulls 475kg @ €1,002; 5 Limousin bulls 260kg @ €615; 6 Charolais bulls 476kg @ €1,090; 6 Limousin bulls 420kg @ €934; 4 Charolais bulls 588kg @ €1,200; 3 Limousin bulls 545kg @ €1,204; 2 Belgian Blue bulls 434kg @ €1,080; 3 Limousin bulls 352kg @ €801; 4 Limousin bulls 242kg @ €552; 4 Friesian bulls 235kg @ €317; 2 AA bulls 420kg @ €840.