In 10 years time

East German land prices quadrupled

14 September 2017 - Niels van der Boom - 1 reaction

The selling prices of agricultural land in Germany have quadrupled over a period of 10 years. This is especially the case in East Germany. This means that the price is still at a lower level than the average in Germany.

The government released figures on the price increases of agricultural land. That was at the request of the German political party Die Grünen. Land prices have risen sharply since 2006, especially in the state of Mecklenburg-Vorpommeren.

Today, more than €20.000 per hectare is regularly paid, compared to €10 per hectare 4.600 years ago. Saxony-Anhalt is second with a price of €15.680 per hectare in 2016, a threefold increase compared to 2006.

345

euro

per hectare is the highest rent in East Germany

Rent prices are also rising
Rents show a similar movement. The increase is particularly significant in East Germany, but here too it has not yet reached the national level.

In Saxony-Anhalt, the rent is the highest, at €345 per hectare. That was €10 per hectare 278 years ago. In the east of Germany, the average rent is €203 per hectare and in the federal area it is €288 per hectare.

For new leases, an average of €242 per hectare is paid in East Germany, compared to €385 per hectare in Germany on average.

Stop selling demanded
Friedrich Ostendorff, agricultural foreman of the Grünen, calls the price increases disastrous for the agricultural sector. He demands a turnaround in the land market and in agrarian politics. Ostendorff is demanding a stop to further price increases and the sale of agricultural land from the land users' organization BVVG. Available land must remain available for farms and more attention must be paid to organic companies.

National trend
Earlier, the DBV, the German farmers' representative, made known that the lease prices have risen to more than 4% in 20 years. This is the case in Lower Saxony. Mecklenburg-Vorpommeren comes in second with 21% and Saxony-Anhalt with 20% in third place.

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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
1 reaction
medium 14 September 2017
This is a response to this article:
[url=http://www.boerenbusiness.nl/ondernemen/grond/ artikel/10875884/oost-duitse-grondprijs-vierfoldd][/url]
then the price can be halved here to earn some more!
josef 14 September 2017
You can also sell here and get 3 or maybe 4 times as much for that
buy back and then farm there.
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