News Farmland
German arable farmer would rather buy than lease
Buying land or renting land are two separate markets. The relationship between the two is not always clear. And that is not only the case in the Netherlands, but also in Germany. This is evident from the figures from Statistikamt Nord about the land market in the German state of Schleswig-Holstein.
Buying land has become a lot more expensive in the state that borders Denmark. Compared to a year ago, the price of arable land has increased by 11,3% to € 41.762 per hectare. Permanent grassland became 8,5% more expensive, resulting in an average price of €21.785 per hectare. It is remarkable that there seems to be less enthusiasm for leasing arable land. In the biennial comparison, 8% less arable land has been leased. The availability of land obviously plays a role in this. Farmers did lease more grassland, which showed an increase of 7%.
In contrast to the large price increase in the owner-occupied market, rental prices remain much more stable. The average rent for arable land in Schleswig-Holstein increased by 0,75% to €563 per hectare. The lease for permanent grassland has risen slightly faster: by 1,4% to €336 per hectare. With regard to the figures, it should be noted that there are major differences between regions in the state, from as little as €30.000 to more than €50.000 per hectare.
Jurphaas Lugtenburg
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