NI agricultural land market scenario is ‘fast changing’ – adviser
Agricultural land prices in Northern Ireland continue to strengthen, with new trends apparent in how this market is defined, according to a financial adviser. Ulster Bank’s head of agriculture, Cormac McKervey commented: “Traditionally, there was very little difference in the overall price paid for bare land and acquisitions that also included farm buildings. “However, this […] The post NI agricultural land market scenario is ‘fast changing’ – adviser appeared first on Agriland.ie .
Agricultural land prices in Northern Ireland have been on an upward trajectory, with new trends reshaping the market dynamics, according to Cormac McKervey, the head of agriculture at Ulster Bank. Traditionally, there was little distinction in the overall price paid for bare land versus acquisitions that included farm buildings. However, this scenario is now rapidly changing as investors are willing to pay a premium for land parcels that also feature well-maintained buildings, particularly in the case of poultry units.
McKervey explained that this shift is driven by the difficulty of obtaining planning permission for new poultry enterprises in Northern Ireland. As a result, acquiring a facility with existing housing becomes an attractive option for investors looking to bypass the lengthy approval process. The financial adviser noted that agriculture in Northern Ireland is entering the spring of 2026 with high levels of financial performance. Recent official figures reveal that total bank borrowings for agriculture in the region stand at £947 million, the lowest such figure in the past decade. Concurrently, deposits total £741 million, the highest level since 2016.
"It all adds up to a good news story for farming," McKervey commented. However, he cautioned that events can significantly impact the agricultural sector, citing the Middle East conflict's effect on fuel and fertilizer prices. Feed prices remain steady, but there is a possibility of long-term increases. Regarding finance costs, McKervey stated that they are unlikely to fall given the Bank of England's focus on base rate and its contribution to inflationary pressures.
In summary, the agricultural land market in Northern Ireland is undergoing a transformation, with investors increasingly valuing land with existing farm buildings, particularly in the poultry sector. Despite the positive financial outlook for agriculture, challenges such as fluctuating fuel and fertilizer prices, as well as the Bank of England's monetary policies, could pose challenges for farmers in the coming months. The evolving landscape of the agricultural land market in Northern Ireland underscores the need for adaptability and strategic planning among investors and farmers alike.
