Land prices increased by around 10% last year, according to the latest farming report by the Institute of Professional Auctioneers and Valuers (IPAV).
It reveals that prices increased by as much as 20% on some plots, depending on the location.
According to IPAV, a lack of supply across most land types was evident last year - similar to 2019 and 2020.
It suggests that the supply issue is unlikely to change, and applies to both land to purchase and rent.
"In a country where only approximately 0.3-0.5% of all agricultural lands in the country change hands every year, this is hardly surprising," the report states.
IPAV believe that continued pressure on prices is expected, with further increases anticipated - up to a further 10%
Pat Davitt, CEO of IPAV said behavioural trends which emerged during the pandemic are leading to higher land prices - particularly the ability of many to live and work in rural Ireland.
"It is now a realistic and achievable ambition for many young farming people," he said.
"They can work from their country base, at least for part of the week, and commute to the cities part-time," he added.
While he said this is opening up new opportunities, it is also increasing competition for land.
"The return home of many of our exiles and the purchase of land by other business owners has really impacted land prices in 2021.
"While many cannot survive on farm income alone, the opportunities for off farm income have greatly increased," he said.
For many years, Mr Davitt said forestry held a base price for agricultural land.
"On the prices reported by members, it is difficult to see how much land will be available for forestry going forward," he said.
The report states that Brexit and Covid-19 did not affect the value of land last year.
According to IPAV, the focus for many farmers in 2022 will be inflation.