Auctioneers expect the land market to be a lively and competitive place in 2021. Dairy farmers seeking to expand their holdings to comply with the latest nitrates’ regulations are buying or leasing more ground, while the re-entry of non-farming investors into the market is putting further pressure on supply.
In order to fulfil their nitrates’ obligations, farmers will have to increase their holdings by 5pc or reduce their herd size. This is especially urgent for dairy farmers and most auctioneers don’t see them cutting their cow numbers.
Gordon Cobbe of GVM Tullamore said his phone has been hopping with calls dairy operators looking for land to lease or to buy, “I expect the cost of leasing land to increase considerably,” he said.