North shows rise in land price

The price of land in the Northern Netherlands rose the fastest in the fourth quarter of 2017, according to the fourth quarterly report on the agricultural land market from the Land Registry and Wageningen Economic Research. The land price in that region was €57.200.

The average agricultural land price in the fourth quarter amounted to €61.200 per hectare, which is lower than in the third quarter. This is because a large area in the IJsselmeer polders was transferred at a fairly high price in the third quarter. The average agricultural land price over the whole of 2017 rose by 3% to €59.500 per hectare.

In the Netherlands, a total of 34.300 hectares of land were traded, which is 1,9% of the total agricultural area. This means that approximately the same amount was traded in 2017 as in 2016. 

North is approaching east
Land prices in the north rose the fastest of all regions in the fourth quarter. In the third quarter, the price still amounted to €47.600, but in the fourth quarter it increased by 20% to €57.200 per hectare.

In 2017, the price in the north of the Netherlands rose by 7% from €48.800 in 2016 to €52.200 in 2017. According to Jouke Havinga, broker at Havinga Makelaardij, the increased price is due to the rising price for arable land. "The need for land is still there, also because land-relatedness is important," says Havinga. This is also confirmed by other brokers.

The price paid in the north in the fourth quarter is close to the €59.900 per hectare paid in the east of the country. The price in the east, which also includes the IJsselmeer polders, has returned to normal. This after a third quarter strong rise was visible.

There was also a lot of movement in the west of the country. The land price there rose by 5% to €58.500. The south showed no movement and remained stable, but high at €66.500 per hectare.

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Source: Land Registry and Wageningen Economic Research

Traded land fairly even
In the north of the country, 9.100 hectares of land have been traded, showing that there has been slightly more traded compared to last year. Much land was also traded in the west: 4.900 hectares in 2017. In the east of the country, the same amount of land was traded as in 2016 (10.400 hectares). In contrast, trade in the south decreased slightly, from 10.300 hectares in 2016 to 10.000 hectares in 2017.

Grassland vs arable land
The price of arable land in the fourth quarter of 2017 will be €65.500 per hectare. For the whole of 2017, the price of arable land amounts to €65.500, almost the same as in 2016. In contrast, the price rose price of grassland yes, namely by 4%. This brings the price to €57.900 per hectare. For the whole of 2017, the price will be €55.500, which is 5% higher than in 2016.

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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