Farm land values continue to rise despite headwinds

Agricultural land values in the midlands continued to rise in the first half of 2026, although the region recorded one of the slowest rates of growth nationally, according to a new report from Sherry FitzGerald.

The midlands recorded a 2 per cent increase in value of all farmland during the first six months, compared with a national increase of 5.3 per cent. The report’s 12-month rolling figures show that farmland values nationally reached an average of €13,528 per acre by the end of June, following an 8 per cent increase in 2025.

While the report does not provide a specific average price per acre for Westmeath, it places the county within the midlands region, alongside the other central counties.

The midlands had previously experienced particularly strong growth in agricultural land values. Over the two years to the end of H1 2026, land values in the region increased by between 17 per cent and 18 per cent, although this was significantly below the 42 per cent increase recorded during the previous two-year period.

The slower growth during the first half of this year was evident across different categories of land.

Prime arable land in the midlands increased by just 1.7 per cent during H1 2026, the lowest rate of growth recorded among the regions.

Marginal grassland values in the midlands rose by 2.4 per cent, while nationally marginal grassland was the strongest-performing land type, increasing by 6.7 per cent.

The report highlights the continued strength of the agricultural land market despite considerable pressures facing farmers.

Nationally, land values rose by 8 per cent in 2025 and a further 5.3 per cent during the first half of 2026. Sherry FitzGerald says a shortage of land coming onto the market is a major factor supporting prices, with relatively few farms being offered for sale and strong competition for quality holdings.

However, the outlook for the remainder of 2026 is more cautious.

Farmers are facing higher input costs, with agricultural input prices 8 per cent higher in May than a year earlier. Fertiliser prices were up 22.7 per cent, while energy costs had increased by 23.3 per cent.

At the same time, agricultural output prices were 14.9 per cent lower year-on-year in May, including falls of 11.5 per cent in cattle prices and 23.7 per cent in milk prices.

Sherry FitzGerald said these pressures, together with the possibility of higher borrowing costs and adverse summer weather, could lead to greater caution among farmers.

Nevertheless, the report concludes that limited land supply is likely to continue supporting competition for well-located farms that come onto the market.