arable land rises 5 percent
Livestock farmers ask less for grassland
The average agricultural land price rose by an average of 2016 percent in 5. The price of arable land in particular increased. That of grassland decreased slightly in the second half of the year. The NVM Department of Agricultural & Rural Real Estate draws these conclusions.
The average price for a hectare of agricultural land for 2016 is 57.900 euros. A year earlier, that was 55.200 euros. That calculate NVM Department of Agricultural & Rural Real Estate (NVM A&LV) based on its own data, data from Wageningen Economic Research (formerly LEI) and data from the Land Registry.
8
procent
Grassland falls in second quarter
57.900 euros per hectare means an increase of 5 percent compared to 2015. Arable land rose 8 percent in one year, to 60.600 euros. In 2015 that was 65.700 euros.
Grassland increased in value by 4 percent. This amounts to 52.800 euros. However, in the second half of 2016, it fell in price. A decrease of 1,7 percent was visible. That led to a price of 52.300 euros.
Interest as a catalyst
According to NVM A&LV, the catalyst for rising prices is low interest rates. This attracts investors, who lease land and thereby generate more returns than parking money in savings accounts. In addition, rents are rising.
Since the earning capacity in arable farming was more favorable than dairy farming, prices for arable land are rising faster. According to an estimate by Wageningen Economic Research, the average arable income is 97.000 euros. For dairy farms that is 75.000 euros. The latter group has lower costs, but also less income.
Land price is rising fast in Southwest
The land price increased most in 2016 in the southwestern arable area, by 14 percent. Bouwhoek and Hogeland rose ten percent, the Veenkoloniën and Oldambt seven percent. With an average of 77.000 euros per hectare, the IJsselmeer polders remain by far at the top, although the difference with the Southwestern Arable Area is still 'only' good 7.000 euros. The area under regular lease decreased in 2016. Liberal leases, with a duration of six years or less, rises above 100.00 hectares for the first time.
No more land sold in 2016
In 2016, a total of 34.600 hectares changed hands. The ground mobility thus amounts to 1,9 percent. that is equal to 2015. Less land was traded in the north and east. More in the west and south.
Livestock farms are difficult to sell
The real estate market differs greatly per sector. Transactions of dairy farms were particularly difficult. Last year the number of dairy farms for sale exceeded 100 for the first time. In previous years this was a maximum of 90. The number of companies sold is also decreasing. NVM attributes this to the low milk price and the unclear phosphate policy. The sale of pig farms is also difficult. The poultry sector shows minimal improvement.
Decrease in number of arable farms sold
Arable farming and (greenhouse) horticulture are doing better. Affiliated brokers have, however, sold more residential farms. The number of arable farms for sale rose slightly in 2015. The number of companies sold fell.
In total NVM brokers handled 272 transactions of agricultural companies during the past year. About thirty more than in the previous year.
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Niels van der Boom
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