Land prices in Northern Ireland are currently averaging £13,500/ac. This figure was confirmed by Ulster Bank’s head of agriculture, Cormac McKervey at the launch of this year’s Balmoral Show.
McKervey said: “There is a strong demand at farm level to invest in land. The banks will be happy to support these decisions. Very little land comes on to the market on an annual basis.
“So, an investment in land acquisition is an obvious way of securing a sustainable future for individual farm businesses.”
However, McKervey expressed some concern at the continuing delays in allowing farmers to invest in the infrastructure of their farm businesses.
He cited the planning delays, associated with Northern Ireland’s ammonia regulations, adding:
“Farmers are investing up to £20,000 in planning applications, only to be told that the envisaged project does not meet the ammonia-related criteria.
“The reality is, that technology will address the ammonia challenge. In the meantime, it is not right for almost all farm infrastructure to be stymies on the back of these regulations.”
Land prices
Turning to the evolving farm support measures now becoming a realty in Northern Ireland, the Ulster Bank representative highlighted their fit-for-purpose nature.
“The focus on securing higher levels of efficiency across agriculture as a whole makes total sense.
Meanwhile, Ulster Bank is confirming that it recognises the impact of the continuing bad weather on farm cash flows.
McKervey continued: “There are financial pressures coming on numerous farm businesses at the present time.
“Up to now, very little slurry or fertiliser has been put on to land, with turnout significantly delayed.”
According to McKervey, the banks fully recognise that the weather is outside the control of local farmers.
“So, if it’s a case of farm businesses needing short-term cash flow assistance, we will respond accordingly,” he confirmed.
“Longer-term forms of assistance will require farmers compiling a cash flow projection.”
However, the Ulster Bank representative was also keen to strike a more upbeat perspective, adding:
“A few days of good weather can quickly change the mood and the circumstances impacting within a farming business at this time of the year.”
