BSE crisis blamed for depressed land prices

THE Best crisis has depressed land prices, especially in Leinster, according to a survey by the Institute of Professional Auctioneers and Valuers.

The survey of sale and lease prices over the past six months reveals an average overall increase of 7 per cent. However, the IPAV contrasts this with a 20 per cent rise in the period before the BS controversy.

Leinster fared worst, with an overall fall in prices. Grazing land suffered the biggest losses, with sales and letting prices falling by 2 per cent and 5 per cent respectively. Letting of grazing land also fell by 7 per cent in Munster, but sales prices increased by 8 per cent.

In some cases, the IPAV said, grazing prices have fallen from £100 an acre to £30.

Tillage sales performed best, with price increases of 9 per cent and 6 per cent respectively in Munster and Connacht, but no change in Leinster. The survey did not include Ulster, where the institute has too few members.

In reply to questions about IPAV members' perceptions of the market, 64 per cent of auctioneers said land prices hand been unchanged in the past six months. They said many buyers and sellers were putting off decisions.

The survey also found a low level of confidence among auctioneers, with 55 per cent "unsure" about future trends and 34 per cent expressing only "cautious optimism".

Commenting on the findings, the IPAV said that while dairy land prices continued to do well, it was clear that beef farmers were now very reluctant to borrow money to buy land. It predicted that the remaining two months of the year would be critical for farmers affected by the BSE problem.

The IPAV represents some 500 auctioneers, estate agents and valuers throughout Ireland, 35 per cent of whom replied to the questionnaire.

The Irish Auctioneers and Valuers Institute (IAVI), which represents 1,100 members in the Republic and Northern Ireland, said it was "too early to say" what influence BSE was having on land prices. Mr Robert Ganley, chairman of the IAVI's rural committee, said the institute would publish end of year findings in December.