Corona has no grip on the land market yet

The agricultural land market has not yet suffered greatly from the corona crisis. There is a reasonable and steady mood within the agricultural real estate and land market, says Hans Peters, chairman of the Rural & Agricultural Real Estate Section of VBO Makelaar.

"To date, no direct consequences of the corona virus on the agricultural land market can be seen," said Peters. There is a steady situation in the land and property market. The market is in a reasonable mood and it seems stable. The viewings of companies often continue as usual. So it can actually be said that the virus has not (yet) hit the agricultural real estate market. However, it cannot be ruled out that the effect will still come, says Peters.

Milk price at a reasonable level
For example, the milk price has not collapsed, according to Peters. This is still at a reasonable level. As a result, dairy farmers have not yet encountered such problems that they put their land or their company up for sale early. However, this is the situation now. It is not yet known whether the blow caused by the corona crisis will come.

The nitrogen problem is causing much more uncertainty on dairy farms than the corona crisis has so far, says Peters. "Uncertainty about licenses issued or yet to be obtained, for example."

The corona crisis does affect the attitude of banks. "What we see is that banks have become a little more reserved in this crisis," said Peters. The banks have to deal with uncertainty surrounding the financial situation of many companies. Companies that get into trouble therefore have priority. As a result, banks need more time and are somewhat more reluctant to accept applications for and financing of land purchases."

Farmland vote
The prices of agricultural land are still lowest in the peat areas and on the very heavy clay soils, notes Peters. In fact, the soils where arable farming is difficult. "The mood for these soils is not the same as for the arable soils. In the market for these peat areas and heavy clay soils, we see a price-pressing mood rather than a price-bearing one. Little has changed for the arable soils. revenue model can be achieved and the mood in this market is accordingly."

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