News Farmland
Major regional differences in new lease standards
The new lease standards for 2022 are known. The standard has been lowered in eight regions, increased in five and the standard remains the same in one region. There are large differences in the change percentages between the regions.
The largest increase this year is for the Central livestock area, where the lease price is €518 per hectare, an increase of 17%. At number two is the Hollands/Utrechts meadow area. There the rent increases to €715 per hectare, a change percentage of 12%. The largest decrease this year is for the Southwestern arable area, where the rent standard is reduced by 23% to €365 per hectare. Last year, this area was still the largest riser with 25%. In seven of the fourteen areas, the change in the rent was limited to an increase or decrease of 3% or less.
The lease standards are calculated by Wageningen Economic Research (formerly LEI) on the basis of the five-year average of the yield from the land and the land remuneration, with a correction for the yield requirement of lessees. The standard is based on the operating results of medium and large arable farming and dairy farms. For arable farming, the above-average year 2015 has been replaced by the mediocre year 2020. For livestock farming, 2020 was actually a better year of 2015.
The letter from the minister about the lease standards, including appendices in here to find.
Jurphaas Lugtenburg
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