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Lease standards throughout the Netherlands on the rise

5 July 2023 - Jurphaas Lugtenburg - 2 comments

The regional norms for rent in 2023 are known and prices will increase in 2023 in all regions. The lease standard is determined on the basis of the yield of the land as calculated by Wageningen Economic Research (WUR). The lesser year 2016 no longer counts, the better year 2021 will take its place.

In percentage terms, the lease price is rising the fastest in the Waterland and Droogmakererijen region, namely by 54%. The lease price for 2023 is therefore €357 per hectare. This means that the lease price remains the lowest compared to the other regions. In the Southwest arable area and South Limburg, the price rises by 37% to €499 and €831 per hectare respectively. The IJsselmeer polders show the smallest price increase, namely by 12%. This means that the IJsselmeer polders remain by far the most expensive region with a lease of €1.398 per hectare.

In terms of income, the average year 2016 in livestock farming has fallen out of the five-year average and has been replaced by the well-above-average year 2021. In arable farming, the average income in 2016 was just below the five-year average and the income in 2021 was well above average. . According to Wageningen calculations, the average land payment over the period 2017-2021 was €959 per hectare.

Land price
That calculation of what a hectare yields for the farmer gives something to think about the development of the price of land in the Netherlands. Earlier this year, WUR calculated that the average land price (for unleased land) will rise by 2021% in 5,5, compared to a year earlier to €67.100 per hectare. A simple calculation shows that if you can buy land for the average price and you get an average yield on that land, you would just not be able to pay 1,5% interest on the financing.

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Jurphaas Lugtenburg

Is editor at Boerenbusiness and focuses mainly on the arable farming sectors and the feed and energy market. Jurphaas also has an arable farm in Voorne-Putten (South Holland). Every week he presents the Market Flash Grains

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Lease prices
Comments
2 comments
Subscriber
sonny 5 July 2023
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/granen-grondstof/artikel/10904948/pachttarieven-in-heel-nederland-in-de-lift]Lease standards throughout the Netherlands are on the rise[/url]
A simple math: Bought land in 2011 for 75K, that land is now worth 200k.. Do i say more
Subscriber
Zeeuw 5 July 2023
Don't say more. Buy your neighbors or over-over neighbors yourself and put the government out!
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