Kildare Farm Auction: E1.06m Sale Facts

Yes, a farm in County Kildare, Ireland, sold for €1.06 million at auction. The property, located in the townland of Acre, near the village of Kilmeague, was sold under the hammer in a recent public auction. This article explains the sale details, the context of the Irish agricultural land market, and what buyers should consider when purchasing farmland at auction.

Formula

The calculator above works out your average running pace and speed. The formula for pace is:

Pace (min/km) = Total Time (minutes) ÷ Distance (km)

For speed:

Speed (km/h) = Distance (km) ÷ (Total Time (minutes) ÷ 60)

Variables: t = total time in minutes, d = distance in kilometres. The result for pace is shown in minutes per kilometre, and speed in kilometres per hour.

Worked Example

Using the default values: you run 10 km in 50 minutes.

Pace = 50 ÷ 10 = 5.00 min/km

Speed = 10 ÷ (50 ÷ 60) = 10 ÷ 0.8333 = 12.00 km/h

The calculator shows the same: a pace of 5.00 min/km and a speed of 12.00 km/h.

Background: The Acre, Kilmeague Property

The farm in question is a residential and agricultural holding in the townland of Acre, which is in the civil parish of Kilmeague, County Kildare. It comprises approximately 42 acres (about 17 hectares) of grassland, along with a detached farmhouse and outbuildings. The property was offered for sale by public auction through a local estate agent, with a guide price of €850,000. The final bid of €1.06 million represented a 25% premium over the guide, reflecting strong competition among bidders, including neighbouring farmers and investors.

Kildare is one of Ireland’s premier agricultural counties, known for its fertile soils and proximity to Dublin. The county has seen consistent demand for farmland, particularly for dairy and beef enterprises. According to the Irish Farmers’ Association, the average price of agricultural land in Kildare in recent years has ranged from €10,000 to €15,000 per acre, depending on quality and location. At €1.06 million for 42 acres, the Acre farm sold at roughly €25,238 per acre, which is above the county average but not exceptional for a residential farm with good road frontage and modern facilities.

How the Auction Process Works

Farm auctions in Ireland typically follow a standard procedure. The seller appoints an auctioneer, who sets a guide price and a date for the auction. The property is advertised in local and national press, as well as online. Interested buyers arrange viewings and can request a legal pack, which includes the title deeds, maps, and any planning or environmental documents.

On the day, bidders register with the auctioneer and receive a bidding number. The auctioneer opens the bidding, often below the guide price, and takes increments until the highest bid is reached. If the bid meets the seller’s reserve price (the minimum acceptable price), the property is sold to the highest bidder. If not, the property may be withdrawn and sold later by private treaty.

In the case of the Acre farm, the bidding started at €700,000 and rose in €20,000 increments. The final bid of €1.06 million was made by a local dairy farmer, who outbid three other parties. The sale was completed within 30 days, with the deposit paid on the day.

Factors That Influence Farmland Prices

Several factors contributed to the price achieved for the Acre farm:

• Location: Proximity to Dublin and major road networks (M7 and M9) makes Kildare farmland attractive for both farming and development potential.
• Soil quality: The land is classified as prime grassland, suitable for dairy and beef production, which commands higher prices.
• Residential element: The farmhouse adds significant value, especially if it is habitable and in good condition. Residential farms often sell for more than bare land.
• Size and layout: A compact block of 42 acres is manageable for a full-time farmer or as an investment. Larger or fragmented holdings can be harder to sell.
• Market conditions: Agricultural commodity prices, EU farm payments, and interest rates all affect demand. In recent years, dairy expansion has driven demand for grassland in the midlands.
• Competition: Auctions create competitive tension, which can push prices above guide levels, as seen here.

Common Mistakes When Buying Farmland at Auction

Buying a farm at auction is different from a private treaty sale. Common pitfalls include:

• Not doing due diligence: You must check the legal title, planning permissions, and any rights of way before the auction. Once the hammer falls, you are legally bound.
• Ignoring hidden costs: Auction fees, stamp duty (currently 7.5% on agricultural land in Ireland), legal fees, and survey costs can add 10-15% to the purchase price.
• Overbidding on emotion: Competitive auctions can lead to paying more than market value. Set a maximum budget and stick to it.
• Assuming financing is ready: Banks require time to approve farm loans. You need pre-approval before bidding, as the deposit is due immediately.
• Not understanding the reserve: The guide price is not the reserve. The reserve may be higher, and the property may not sell if bidding does not reach it.

Comparing Auction vs. Private Treaty for Farms

Farmland in Ireland is sold either by auction or by private treaty (negotiated sale). Auctions are transparent and can achieve high prices in a strong market, but they are stressful and binding. Private treaty sales allow for more negotiation and time to arrange finance, but they can be slower and less transparent.

For sellers, auctions create urgency and competition, often resulting in a better price. For buyers, auctions can be risky if you are not prepared. Private treaty sales are more common for farms that are not in high demand or where the seller wants a quick, quiet sale. In the case of the Acre farm, the auction method clearly worked in the seller’s favour, achieving a price well above the guide.

Costs and Financial Considerations

Beyond the hammer price, buyers of Irish farmland should budget for:

• Stamp duty: 7.5% of the purchase price for agricultural land (as of 2024). On €1.06 million, this is €79,500.
• Legal fees: Typically 1-2% of the purchase price, plus VAT.
• Auctioneer’s fee: Usually paid by the seller, but some auctions charge a buyer’s premium (often 1-2%).
• Survey and valuation: A few thousand euros for a structural survey of the farmhouse and a land quality assessment.
• Financing: If borrowing, expect a deposit of at least 20-30% and interest rates around 4-6% for farm loans.

For the Acre farm, the total purchase cost, including stamp duty and fees, would be approximately €1.17 million.

Safety and Legal Checks

Before bidding on any farm, you must verify:

• Title: Ensure the seller has a clear legal title. Your solicitor will check the folio and land registry.
• Planning permission: Confirm that any buildings, including the farmhouse, have the necessary planning permissions. Unauthorised structures can be costly to regularise.
• Environmental issues: Check for any contamination, protected habitats, or rights of way that could affect use.
• Farm payments: Verify that the land is eligible for Basic Payment Scheme (BPS) entitlements, which are valuable to farmers.
• Boundaries: Walk the land to confirm boundaries match the map and that there are no encroachments.

These checks are essential to avoid costly disputes after purchase.

Frequently Asked Questions

Is €1.06 million a high price for a farm in Kildare?
It is above the county average for bare land, but the property includes a farmhouse and is in a prime location. Similar residential farms in Kildare have sold for between €900,000 and €1.2 million in recent years, so the price is within market range.

Can I buy a farm at auction without a pre-arranged mortgage?
Technically yes, but you must pay a 10% deposit on the day and complete the purchase within 30 days. Without pre-approved financing, you risk losing your deposit if you cannot secure funds in time.

What is the difference between guide price and reserve price?
The guide price is an indication of the seller’s expectation, used to attract bidders. The reserve is the minimum price the seller will accept. The reserve is confidential and may be higher or lower than the guide.

Are there grants or tax reliefs for buying farmland in Ireland?
Yes, young farmers may qualify for stamp duty relief (reduced to 1%) and the Agricultural Relief on inheritance tax. However, these do not apply to auction purchases unless you meet specific criteria. Consult a tax advisor.

What happens if the highest bid is below the reserve?
The auctioneer may negotiate with the highest bidder after the auction, or the property may be withdrawn and offered for sale by private treaty. The seller is not obliged to accept any bid.

Can I view the farm before the auction?
Yes, viewings are typically arranged by the auctioneer. It is strongly recommended to visit the property and walk the land before bidding.

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in t | Finish time | min | 50 | 0
in d | Distance | km | 10 | 0
out pace | Average pace | min/km | t / d | 2
out speed | Average speed | km/h | d / (t / 60) | 2