In 4 years time
German lease prices up 20 percent
In 4 years, German farmers have paid an average of almost 20% more for their leased land. That is what Der Deutsche Bauernverband (DBV), the German counterpart of LTO, calculates. Lower Saxony has the largest price increase. It is above 20%. Scarcity of agricultural land pushes up prices.
In 2016, a German farmer paid an average of €288 for one hectare of leased land. Perhaps a good price for Dutch standards, but it represents an increase of more than 19% since 2013.
Lower Saxony has the largest price increase. In 4 years time, 22% was added. In Mecklenburg-Vorpommern this is 21% and in Saxony-Anhalt 20%. About 3 in 4 farmers in Germany have leased land in their portfolio, says DBV. That was the case in 2016, according to figures from the Statistische Bundesambt.
2,8
billion euros
By way of comparison: in the Netherlands, the lowest regional standard for leased land €414 per hectare. The IJsselmeerpolders are at the top with €1.049.
Scarcity drives up price
According to DBV, the reason for the price increases is the demand for agricultural land. 'Flächenknappheid' drives up prices. More is paid for both lease and purchase. Total expenditure on leased land amounted to €2018 billion in 2,8, according to DBV. A doubling compared to 1992.
According to the stand organization, this is partly because prices are determined according to soil fertility and yield potential. Biogas installations, with their demand for land for silage maize and other energy crops, are also driving prices up. More land is also needed to put the fertilizers back on the land.
Hardly any liberal lease
According to DBV, investors from outside the agricultural sector only play a minor role in the German lease market. Falling EU subsidies do not affect land and lease prices. The two grow further apart.
Niels van der Boom
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