News Land market
Leaseholders await a nasty surprise due to inflation
Farmers who have land on long leases may have to deal with significantly higher lease prices as a result of inflation. The NVM real estate association warns about this in the report 'Vastgoedmarkt in beeld' for the first half of 2022. The NVM also notes that the price of agricultural land has risen in the first six months of 2022.
Landlords who issue land on long lease have often included a clause in those agreements stipulating that the ground rent is increased annually with the inflation in the previous year. As a result, the canon can turn out significantly higher next year. "This can mean that various entrepreneurs encounter challenges," writes the NVM.
The price of land has risen in the first half of 2022, a hectare of grassland on average €64.300 and arable land €80.000 per hectare. Grassland has thus become 3,6% more expensive compared to 2021 and arable land has become 8,5% more expensive. The price of land has not risen everywhere, according to the NVM. In the Northern Pasture Area, the price fell by 3%. There are also outliers to the top. In Western Holland, land became 14% more expensive and the price in the Southern Livestock area rose by 16%. In the arable land category, it is striking that almost a third of the transactions were made in the Veenkoloniën and the Oldambt.
Uncertain policy
In the (intensive) livestock farming sector, potential sellers seem to keep an eye out until there is more clarity about a possible purchase and termination arrangement. As a result, the supply of intensive companies in particular has decreased. Due to the increased milk price, the demand for dairy farms has increased, according to the NMV. In the first half of 2022, brokers affiliated with the association sold 45 dairy farms. In both 2020 and 2021, 74 companies were sold for the entire year. The average selling time in the first half of 2022 was 196 days. A year earlier, it was 285 days. The supply of dairy farms decreased relatively little. This includes a group of companies that are less common and have been available for a longer period of time.
Jurphaas Lugtenburg
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