NI agricultural land market scenario is ‘fast changing’ – adviser

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 poultry sector.

McKervey explained that the growing demand for land with existing infrastructure, such as poultry units, is due to the current challenges in obtaining planning permission for new developments in Northern Ireland. Acquiring a facility with housing provides a viable alternative to building from scratch, given the hurdles associated with the planning process.

In addition to these market shifts, agriculture in Northern Ireland is entering the spring of 2026 with a strong financial performance. The latest official figures reveal that total bank borrowings for agriculture in the region stand at £947 million, marking the lowest such figure in the past decade. Conversely, deposits total £741 million, the highest level since 2016. McKervey described this as "good news for farming."

Despite these positive indicators, McKervey cautioned that external factors can significantly impact the agricultural sector. He highlighted the Middle East conflict's effect on fuel and fertilizer prices, which has already begun to influence feed costs. While feed prices remain steady, there is a possibility of long-term increases. Furthermore, finance costs are unlikely to decrease, given the Bank of England's focus on base rate and its potential to exacerbate inflationary pressures.

In conclusion, the agricultural land market in Northern Ireland is undergoing significant changes, with investors increasingly valuing land with existing farm buildings, particularly in the poultry sector. This trend is driven by the difficulty in securing planning permission for new developments. Meanwhile, the region's agricultural sector is experiencing strong financial performance, with record-low borrowings and high deposits. However, challenges such as fluctuating fuel and fertilizer prices, coupled with potential inflationary pressures, underscore the need for farmers to adapt and navigate these evolving economic conditions.