Farmers believe in land, prices have risen more

The price of agricultural land in the Netherlands has risen sharply again in 2024. On average, €85.300 was paid for a hectare of arable, grass or silage maize land, according to the annual report on agricultural real estate of the NVM. This is 8,3% more than a year earlier.

The continuing scarcity on the land market, combined with extra demand from livestock farming, is causing strong price pressure. According to NVM, it is noticeable that dairy farms are being sold remarkably quickly. 

Just under a ton
For arable land, the average price in the second half of 2024 even exceeded the €100.000 per hectare threshold. Over the entire year, the average price will be €99.600 per hectare. Grassland also became considerably more expensive and ended 2024 at an average of almost €80.000 per hectare. According to Jos Ebbers, chair of the Agricultural & Rural sector at NVM, this is not surprising. "Farmers have confidence in the value stability of land and that contributes to the price increase," says Ebbers.

Governments and investors are also bidding
In addition to farmers, governments are also active on the land market, for example for nature development or nitrogen compensation. In addition, private investors are increasingly buying agricultural land as a safe investment. NVM brokers report that these parties regularly offer more than farmers, forcing farmers to go along with higher bids.

"The demand for agricultural land continues to dominate the market," says Ebbers. "There is a lot of demand for extra hectares, especially in dairy farming, for example due to the abolition of the derogation or to comply with stricter rules around extensification."

Dairy farms in demand
This is also reflected in the transaction figures for dairy farms. In 2024, 70 dairy farms were sold, thirteen more than the previous year. The average size was 43 hectares and the average sales price rose to €4 million per farm, a record. Here too, Ebbers sees a clear trend: "We see that dairy farms are increasingly given a different function. Only farms with a nature permit and suitable buildings can be continued."

Intensive livestock farming
The market for intensive livestock farming (pigs, poultry, calves) showed more movement again in 2024. The number of companies sold rose from 17 to 27. This is partly due to the National Termination Scheme for Livestock Farming Locations (LBV). For some entrepreneurs, this guarantees a rock-bottom price, while others are encouraged to offer their company on the free market.

According to Ebbers, this scheme provides additional dynamism: "We notice that some entrepreneurs are now consciously choosing to sell, because the scheme will soon disappear and with it their company."

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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