The cost of agricultural land rose by just over 5 per cent in 2014, as supply reached an eight year high, a new report from the Irish Farmer's Journal shows.

According to the annual report from the agribusiness newspaper, while 2014 was a difficult year for many farmers, with downturns in the price of beef and grain, the land market remained steady with the average price increasing by 5.2 per cent during the year to € 9,890/acre.

Over 86,000 acres were offered for sale in 2014, the highest such figure in the eight year history of the report.

“ Based on this, it is evident that the land market in Ireland is in a relatively healthy position at present, which should be reassuring for landowners and selling agents alike,” wrote Lorcan Allen, editor of the report.

Of the 1,850 farms, incorporating 86,408 acres, offered for sale last year, a total of 826 transactions were completed. These transactions amount to 38,149 acres sold, which represents 44.1 per cent of the 86,408 acres offered for sale. Agents up and down the country certainly felt the effect of the increased supply, with the majority reported to be enjoying their busiest 12 months in years.

The report also found that finance appears to be “less of an issue than in other years”.

The demand for large holdings appears to have softened somewhat in 2014, the report said, with much stronger competition for farms less than 100 acres.

Leitrim was the cheapest source of land in the country, on average, at € 4,047/acre in 2014, representing a 2.6 per cent decline on 2013.

Of the four provinces, Leinster led the way, with a total of 35,028 acres brought to the market achieving an average price of € 12,402/acre – a 13 per cent increase on the 2013 average. In Munster, a total of 31,042 acres were offered for sale on the open market at an average price of € 9,836/acre, up by 5.3 per cent.