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Natura 2000 reduces land prices by up to a third

16 May 2023 - Niels van der Boom - 2 comments

If agricultural land is located within a Natura 2000 area, this has a major impact on the land price. The value is on average one third lower than what is average. Up to a distance of 2,5 kilometers, this influence decreases quickly. The value-depressing effect is then still a maximum of 5%, so calculate researchers from WUR together with the Kadaster.

The Netherlands has 162 Natura 2000 areas. The study filtered on the 112 areas that have been designated as nitrogen-sensitive. Together, these account for more than 600.000 hectares, of which 52.500 hectares are agricultural land. That is 3% of the 1,8 million hectares of agricultural land that the Netherlands currently has. In a radius of 2.500 meters around these areas, you are talking about almost 409.000 hectares of agricultural land that falls within the sphere of influence. That is almost a quarter of the total. What is the influence on the land price of this (nitrogen) sensitive nature? Researchers from WUR investigated this together with the Kadaster. This concerns data up to and including 2020.

Land price rises
The impact within the vulnerable natural areas is the greatest. Over the past ten years, an average of € 43.400 per hectare was paid for a hectare of agricultural land. That is 30% below the national average. Up to 2.500 metres, the land price is 3,6% higher than the reference price. Land prices in and around Natura 2000 areas are rising along with the market, but over the past ten years this increase has often been less than outside the areas.

Which parties buy land in and around Natura 2000 areas? These are often so-called 'site management organisations', but also local authorities such as municipalities or provinces. "All these parties together buy about 1% of all agricultural land that is traded on an annual basis," explains WUR researcher Jop Woltjer. "Every year, about 2% of the agricultural area (36.000 hectares) is traded. So you are talking about 360 hectares that these parties purchase."

2% land mobility means that your neighbour's land comes up for sale once every fifty years. This is probably the basis for the well-known saying that the neighbor's land only comes up for sale once in a lifetime.

Soil withdrawal
When a site manager or province purchases agricultural land, does it always remain agricultural land? That is not always the case. "In addition, you also see that additional requirements are set when the land is rented or leased," Woltjer explains. "Of the 36.000 hectares of agricultural land that are sold annually, between 5.000 and 7.000 hectares are given a non-agricultural destination."

Do nature organizations and governments pay less for land than a commercial party, such as an agricultural entrepreneur? Woltjer: "The Kadaster figures that we have at our disposal show that the same amount is paid within the N2000 areas as commercial parties do. In the radius of 2.500 meters outside, they even pay slightly more. However, you often see that these parties are selective are in the plots of land they want to buy."

Lower ground mobility
Land mobility within the nature reserves is lower than outside. 1,2% of the natural area changes hands every year, according to the study. In the radius outside, mobility is equal to the rest of the Netherlands. According to the researchers, a reason for the lower mobility can be found in the fact that the land is usually leased and therefore does not come onto the market quickly. Because restrictions usually apply to agricultural use, this land is also less popular with farmers.

Figures from Statistics Netherlands do not fully confirm this picture. Compared to the situation in 2010, the area under nature lease fell by 30%. The area of ​​agricultural land with a regular lease construction or one-off lease fell, while the liberalized lease has exploded in surface area. The growth for liberalized leases shorter than six years is 211% and for contracts longer than six years even 377%. The amount of agricultural land used by land management organizations remained stable at just under 13.000 hectares.

Higher termination fee
These movements in the land market are independent of the government's purchasing policy. Tuesday, May 16 known that farmers around nitrogen-sensitive nature reserves receive the highest compensation when they stop. A total of 2.800 companies are eligible for this. Including around and on the Veluwe.

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.
Comments
2 comments
Subscriber
Zeeuw 16 May 2023
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/artikel/10904229/natura-2000-let-land-price-drop-to-a-third]Natura 2000 drops land price to a third[/url]
Nice contribution of this research for entrepreneurs with land in those zones who want to stop. Demand the commercial market price and don't let the tax authorities poach you, demand signature on the deal. New year, new politicians and they have forgotten everything. If you are young and want to remain an entrepreneur, be careful!
Subscriber
Ben June 1, 2023
New year, new politicians and they have forgotten everything.

Continuing to resist is the best solution.
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