News Farmland
Nature management puts pressure on the price and sales of grassland
Grassland on which farmers implement nature conservation measures as part of the Agri-Environmental and Landscape Management (ANLb) scheme is sold for a lower average price than regular grassland, the Land Registry announced today. These plots are also traded less frequently. Now that the government is committed to expanding the ANLb scheme, this raises questions about the value development of these lands and the willingness of agricultural entrepreneurs to participate.
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Choose the subscription that suits youOf the more than 872.000 hectares of agricultural grassland in the Netherlands, 323.000 hectares are currently designated as "search areas for open grassland." Within these areas, farmers can purchase an ANLb management package. In practice, this is done on approximately 87.000 hectares, divided between botanical grassland (18.000 hectares), meadow bird management (21.000 hectares), and nest protection (48.000 hectares). In addition, there are 139.000 hectares of natural grassland, where the nature function is the primary focus.
More stringent nature management reduces value
From 2020 to 2024, the average price of regular agricultural grassland was €69.900 per hectare. For plots with an ANLb management package, this average was €60.600, a difference of approximately 13%. The difference is particularly pronounced for more intensive forms of management, such as meadow bird management (€56.500) and botanical grassland management (€56.600). Grassland with lighter packages, such as nest protection (€63.800), is closer to the average market price.
Grassland parcels within designated ANLb search areas are also sold less frequently than regular grassland. An average of 1,9% of grassland outside the search areas changes ownership annually, compared to 1,2% within the search areas. For parcels with an active ANLb management package, this percentage is even lower, at 1,0%. Natural grassland, where the nature function is dominant, has the lowest mobility rate of all grassland types, at 0,4%.
The lower price of ANLb grassland can have several causes. First, management is often implemented on lands with limited production potential, for example, due to wet conditions or poor soil quality. Such lands have a lower value even without a management package (selection effect). Furthermore, long-term nature conservation measures can affect the agricultural value of plots, for example, through soil impoverishment or increased weed pressure. Expectations about future land use restrictions also play a role, especially in areas near Natura 2000 or on peatlands. Since the introduction of the current ANLb system in 2016, the price difference between grassland within and outside the search areas has increased. In previous years, there was virtually no difference.
Regional differences in price pressure
In Friesland, the price difference between grassland within and outside the search area is limited, likely due to the relatively high volume of clay soil traded within the search area, which has a higher average value. In South and North Holland, prices within the search areas are significantly lower: 5% and 16% below the average outside the search areas, respectively. Plots with ANLb management are even 11% to 19% lower in price there.
