German agricultural land not so expensive before

In Germany, prices for agricultural land have risen to a new record. Figures from statistics service Destatis show that the average price of land rose by almost 5% last year. In the Netherlands, the price rose by 2,2% in the same period.

The average price for a hectare of agricultural land in Germany in 2020 was €27.700. The year before that was €26.400, Agrarheute reports. Not surprisingly, German farmers have had to dig deeper and deeper into their pockets for a piece of land for years. The hectare price rose last year by 3% and has more than doubled from ten years ago. Back then, a hectare of agricultural land cost just under €12.000.

As a result, the price of land in Germany is rising faster than in the Netherlands. However, the price of agricultural land in our country is at a much higher level. In 2020, this was an average of €63.600 per hectare (arable land and grassland). In 2019 that was €62.200 per hectare and ten years ago the price was around €47.000 per hectare. In particular, arable land is becoming more and more expensive in the Netherlands. Last month a record level of almost one ton per hectare reached.

Biggest increase in Lower Saxony
In Germany, the differences in land prices between the federal states are large. Last year, for example, the price level in Bavaria (€64.000) and North Rhine-Westphalia (€59.500) was reasonably comparable to the Netherlands, but was significantly lower in Saarland (€10.700) and Brandenburg (€13.000). In Lower Saxony, the average price for agricultural land rose the fastest last year; three times harder than the average in Germany. With €46.600 per hectare, the state is in third place in the ranking of the most expensive land markets in Germany.

In some federal states, prices fell, completely contrary to the trend. This was the case, for example, in Saxony and Mecklenburg-Western Pomerania. However, the largest decrease was visible in Baden-Württemberg. In this state in southwestern Germany, the land price dropped by no less than 30% to an average of €20.000 per hectare. A movement that is not in line with the development of rents. A possible explanation is that significantly less agricultural land was sold in Baden-Württemberg in 2020: 2.900 hectares compared to 2.400 hectares in 2019.

Less agricultural land sold
The total number of land transactions in Germany also decreased slightly in 2020. Just over 37.000 transactions were concluded, representing an agricultural area of ​​over 82.000 hectares. As a result, the traded agricultural area shrank by 3% compared to 2019. More than half of this area concerns agricultural land in East Germany. In total, €2,27 billion of agricultural land was sold in 2020. That is almost €1 billion more than ten years ago.

Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

j.pennings@boerenbusiness. Nl

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