At Goeree-Overflakkee

Land price southwest to polder level

20 July 2017 - Niels van der Boom - 29 comments

The highest land prices are traditionally realized in Flevoland. However, hefty sums are also being paid on the islands of South Holland for good soil that is suitable for a wide range of crops. This is especially visible on Goeree-Overflakkee. The limit does not seem to have been reached yet.

Major transactions for arable land have recently been realized on the South Holland island of Goeree-Overflakkee. Brokers can easily name the reason for this: agricultural entrepreneurs are looking for expansion. This pushes the price level to a level that is normally only achieved in Flevoland.

130

thousand

euros is maximum paid

Tulip cultivation as a basis
Tonnie van Peperstraten, owner of the Van Peperstraten Group, carries out mediation in the sale of agricultural plots and is also an arable farmer on Goeree-Overflakkee. According to him, there are plenty of reasons why the land on the island is very popular. "The soil quality is good and it has low siltability. As a result, the cultivation options are very diverse. In addition to vegetable crops, the cultivation of tulip bulbs is also very important," he explains. "In addition, during the land consolidation in the 90s, a lot of attention was paid to the construction of large plots with good availability of fresh water. The access is good, as is the geographical location."

Expansion drive among local entrepreneurs
Van Peperstraten mentions a price of €125.000 to €130.000 per hectare, which has recently been paid for the arable land. That is the absolute top. Van Peperstraten does not dare to say whether the land price is at its limit. "In the late 90s, newcomers came to the island from the Randstad. Now it is mainly the established order that is experiencing enormous surface growth. The small companies stop and they are swallowed up by the larger ones."

The entrepreneur notices an enormous urge to expand among his fellow farmers on the island. "Agricultural entrepreneurs want to grow. Elsewhere in the southwest of the Netherlands, you see that happening to a lesser extent."

Land price lifts along
Also Johan van der Slikke, from Van der Slikke Stewards from Ellemeet, is familiar with the high prices paid on Flakkee. However, he speaks of a price level of €110.000 to €115.000 per hectare. He also mentions the cultivation of tulip bulbs and the availability of fresh water as important arguments for pricing. "Elsewhere in the southwest, land prices are between €75.000 and €90.000 per hectare," he says. "At Schouwen-Duiveland, that level is approximately €80.000 to €85.000. In almost all cases we are talking about arable land. Due to the high price level at Goeree-Overflakkee, the price of land is also on the rise elsewhere." Van Peperstraten also notices this: "The prices are riding along slightly. Because of the scarcity, you see that arable farmers outside the island are looking at expansion."

A stopping farmer would rather not sell

Hesitating offer
According to Van der Slikke, the urge to expand, which is clearly noticeable on Flakkee, is also underway on the other islands. "You hear less about it, however. Moreover, there is little land for sale. The offer should mainly come from the stoppers, but they are still hesitating. If you put the money in the bank, it will not yield anything either. value, but money doesn't have to. 

Investing in the stock market is also risky. You notice that people have become conservative. Moreover, they do not trust banks. A quitting farmer therefore chooses to rent out or lease his land to a colleague. That yields more returns. In addition, stability is sought. Ground gives that stability. Interest rates also have a major impact. Entrepreneurs are afraid of losing money. The fact that the price of land is now at such a high level has nothing to do with farmers, but everything to do with the scarcity that prevails."

Do you have a tip, suggestion or comment regarding this article? Let us know

Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.
Comments
29 comments
Skirt 20 July 2017
This is a response to this article:
[url=http://www.boerenbusiness.nl/ondernemen/grond/ artikel/10875246/grondprijs-zuidwesten-naar-polderlevel][/url]
Apparently there are growers who have Goudboompjes in their garden.
Subscriber
Free Agria 20 July 2017
kjol wrote:
This is a response to this article:
Apparently there are growers who have Goudboompjes in their garden.


Hoage Boamen there on Flakkee ;)
piet 20 July 2017
What you can do, I can do ok, but better than cattle
Wim 20 July 2017
T. is for many a great objection. if he sees another go well
This is on top of a facade in Dirksland. They already knew that in 1600
socks 20 July 2017
Again the land is not too expensive, that worthless pumped up euro that is the problem. A small leak and all is over see the old Italian lira. The euro has no backbone / cover.
Agri 20 July 2017
If we still had the guilder, the land would now cost just 130.000 guilders, that euro is just a farce.
Jan 21 July 2017
there is nothing wrong with the euro. the land is far too expensive but apparently there are still people who would like to work for the bank. you better go and work there in the office. can you go home at 17:00 pm
Wim 21 July 2017
No, it is not the euro, for the euro the potatoes cost 25 cents at the farmer and when the euro came the farmers sold them to the yard for 50 euro cents, that is converted FL1,10, that is 4 times over the head, the land prices have not gone upside down 4x, so it is all not too bad, otherwise it is what the madman gives for it.
piet 21 July 2017
Potatoes are not sold for 50 euros
If you sell for 25, you're doing great
Land prices have become 4 times more expensive over the years
Conclusion: your comparison does not hold
I won't talk about the wheat price over the past 30 years
Thomas 23 July 2017
Yes, it can also go completely wrong with such prices, so not much should go wrong or everything will go wrong. The pigs and dairy farms have already had their fill of purchasing phosphate rights and adapting the stables.
Subscriber
land buyer 23 July 2017
in 10 years you will know. In the past 54 years, the price has doubled every 10 years, may well stabilize or fall slightly. Yet the people who have regularly bought land are the best off so far.
Bert 23 July 2017
In Flanders 150000 has already been given. Within 10 years that is 200000 on average
Skirt 23 July 2017
HaHa, dream on, the farmers will not pay that in any case. If interest rates are going to rise at some point, and that will certainly happen, then another barrel will be tapped.
Henk 23 July 2017
"If interest rates are going to rise soon...".
Most buyers only need a bank to a limited extent and even if the interest rate goes up, no one will suddenly sell. So it doesn't matter. Nor are they shares or options that suddenly become worthless; at most, the land price can drop slightly, but in fact the ground still remains and you can just keep plowing...
land shortage 23 July 2017
A lot of farmers have to make way for various developments.
If half of the farmers remain....
Skirt 23 July 2017
Henk wrote:
"If interest rates are going to rise soon...".
Most buyers only need a bank to a limited extent and even if the interest rate goes up, no one will suddenly sell. So it doesn't matter. Nor are they shares or options that suddenly become worthless; at most, the land price can drop slightly, but in fact the ground still remains and you can just keep plowing...


We'll see, everything revolves around supply and demand. And indeed if you are not heavily financed you can continue to plow, the ground will remain, but the owner who can no longer meet his obligations is quickly removed.
piet 23 July 2017
This is entrepreneurship
Companies that never expand stand still
They will all disappear sooner or later, this is not just in agriculture
You have to act responsibly, this is different for everyone
You can't make land, there will always be a shortage, so there is more demand than supply
The ground hunger is unbelievably great
Skirt 23 July 2017
You can't make coal either, how did that end....
piet 23 July 2017
I don't understand your comparison
Subscriber
Drent 24 July 2017
piet wrote:
This is entrepreneurship
Companies that never expand stand still
They will all disappear sooner or later, this is not just in agriculture
You have to act responsibly, this is different for everyone
You can't make land, there will always be a shortage, so there is more demand than supply
The ground hunger is unbelievably great

You say that now. piet, but I remember that in the 90s there was more supply than demand, even then it was not possible to make land. , that all counts.
piet 24 July 2017
We also bought in the 90s
I don't regret that
Subscriber
Skirt 24 July 2017
If Piet would have eternal life, there would be little left for sale.
peta 24 July 2017
drent wrote:
piet wrote:
This is entrepreneurship
Companies that never expand stand still
They will all disappear sooner or later, this is not just in agriculture
You have to act responsibly, this is different for everyone
You can't make land, there will always be a shortage, so there is more demand than supply
The ground hunger is unbelievably great

You say that now. piet, but I remember that in the 90s there was more supply than demand, even then it was not possible to make land. , that all counts.

Don't forget to factor inflation into the factors either. Inflation makes the land more expensive and the mortgage on it relatively cheaper.
Skirt 25 July 2017
Nonsense, inflation should also apply to product prices, this has been very minimal. It is funny that, just like before the stock crisis, many arguments are made as to why the high price level is justified. We all know how that ended.
Agri 25 July 2017
Right, but the shares have also crawled out of the valley
peta 25 July 2017
kjol wrote:
Nonsense, inflation should also apply to product prices, this has been very minimal. It is funny that, just like before the stock crisis, many arguments are made as to why the high price level is justified. We all know how that ended.


We now have potato prices in euro amounts that were in guilder prices 15 years ago, but we don't get the toppers of 1 € thanks to farmers who no longer know what market game is.
Wheat also remained in surplus at € 15 cents, while 10 years ago we had 10 cents in a comparable market situation. So don't talk negatively about everything, otherwise stop doing business, because then you won't do anything anymore!
Calculator 25 July 2017
petatje wrote:
kjol wrote:
Nonsense, inflation should also apply to product prices, this has been very minimal. It is funny that, just like before the stock crisis, many arguments are made as to why the high price level is justified. We all know how that ended.


We now have potato prices in euro amounts that were in guilder prices 15 years ago, but we don't get the toppers of 1 € thanks to farmers who no longer know what market game is.
Wheat also remained in surplus at € 15 cents, while 10 years ago we had 10 cents in a comparable market situation. So don't talk negatively about everything, otherwise stop doing business, because then you won't do anything anymore!

Is it completely correct, have you also looked at everything you buy? Eg seed potatoes.....and planting another ton more per ha.
Just comes down to the same thing.
Jan 25 July 2017
Land has always been too expensive to farm economically, yet the entrepreneurs who have always bought are still farmers who have not bought is no longer no shame, this allows others to grow
Subscriber
Skirt 25 July 2017
Partly true, in Denmark they think differently, that's where things went very wrong. By the way, entrepreneurship is not about buying land in itself, buying land for a farmer is often investing with borrowed money. But of course it is logical that there is now more buying/demand with the current extremely low interest rates, nothing else. Not a cent more is earned than 10 years ago when the price of land was half what it is today.
Subscriber
Free Agria 25 July 2017
Jan wrote:
Land has always been too expensive to farm economically, yet the entrepreneurs who have always bought are still farmers who have not bought is no longer no shame, this allows others to grow


Know some who always bought and are no longer farmers.
You can no longer respond.

View and compare prices and rates yourself

News Ground

'Stop soil leads to more arable farming area'

Background Ground

Do you choose the farmer or the investor in the tenancy law?

News Ground

French land prices rise, but trade collapses

News Ground

Price dip for arable land, grassland more expensive again

Call our customer service +0320 - 269 528

or mail to supportboerenbusiness. Nl

do you want to follow us?

Receive our free Newsletter

Current market information in your inbox every day

Login/Register