French land prices rise, but trade collapses

Despite low grain prices, land prices in France have continued to rise in 2024. This is the third year in a row that an upward trend is visible. The number of transactions is decreasing considerably and last year it fell below the 100.000 mark.

This is stated in a recently published report by Safer, which examines the French land market every year. It shows that the average French land price (for free land) rose by 3,2% last year to €6.400 per hectare. With the exception of Burgundy, a price increase is visible in all areas. According to the report, the relatively high prices for beef cattle and milk certainly contribute to the price increase.

Grain regions
Also striking is the strong increase of 7,4% to €6.810 per hectare in the grain region Grand Est. In Hauts-de-France, which borders Belgium and is also known for its grain cultivation, the price increase of 7,7% to €10.950 per hectare was also above average. Despite the relatively low grain prices, the demand for grain land remains high; at the same time, there is a limited supply in these areas.  

Within the family
This is also reflected in the number of land transactions completed, which fell by 5,9% to 98.350, the lowest number since 2019. The area traded fell by 5,2% to 431.200 hectares. Based on these figures, it appears that 1,66% of French agricultural land changed hands last year, although the majority of transactions (two-thirds) are done within the family. 

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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