The high land prices and complex regulations in the Netherlands are reasons for many farmers to leave the country. A growing number of farmers are thinking of continuing their business abroad. What about land prices there, and who are emigrating?
"Many farmers are currently going to Germany and Denmark," says Jeroen Aalberts, emigration supervisor at Farms4Sale. "These are countries that are still part of Western Europe and where people are not dependent on the plane." According to Aalberts, land prices in Germany vary widely. "These are between €5.000 and €40.000 per hectare, a significant gap."
The livestock farming sector is well suited to Rheinland-Pfalz, a state in eastern Germany. In that region, suitable land can be purchased for €15.000 per hectare. In the north of Germany, the price for these lands is on average €10.000 higher per hectare. These are larger plots. However, good arable land is scarce in our eastern neighbors. The fields near biodigesters are often a lot more expensive.
The average land price for grassland in Denmark is €20.000 per hectare and €5.000 more per hectare is paid for arable land. "The land in Denmark turned out to be much cheaper than in the Netherlands. If we sold 1 hectare in the Netherlands, we could buy back 3 or 4 hectares in Denmark," said a Dutch arable farmer in Denmark in a publication by the Netherlands Enterprise Agency.
France remains attractive
"France remains attractive because it has the lowest land prices in Western Europe," says Leo Dorresteijn, emigration expert at Van der Slikke. In France, the land price has risen less rapidly in recent years than in countries such as Germany, where the land price has risen by €7 per hectare in the past 1.000 years. "It should be noted that local French farmers are given priority if a plot becomes available. This has to do with a preferential right of the French land bank Safer."
"Land prices in France are between €6.000 and €10.000 per hectare," Dorresteijn says. The price of €6.000 mainly occurs in central France, where prices are lower. This is because grain maize has to be irrigated there. Northern France has the highest prices, because there is more competition on the land market and the yields per hectare are better.
Sweden arouses interest
“Sweden is a country that is of increasing interest,” claims Richard Roddenhof, emigration coordinator at Interfarms. Land prices there are between €8.000 and €25.000 per hectare. "In the Netherlands, farmers are almost chased away by the high regulatory pressure, while the rules in Sweden are much more stimulating. This is because there are too few business successors."
Eastern Europe is the cheapest
Land prices are on average the lowest in Eastern Europe. Slovakia is still relatively unknown among Dutch farmers. Yet Interfarms sees a change in this. "German farmers are actively buying land in Slovakia, but we are currently also supporting Dutch farmers," said Roddenhof.
The land price is favorable compared to other European countries. The price varies between €4.000 and €12.000 per hectare. According to Roddenhof, Slovakia is suitable for the agricultural sector because of its fertile soil (especially in the south and west of the country). "In addition, the country has good infrastructure, is farmer-friendly, has good facilities and is close to important markets."
Romania also has low land prices, but they do show an increasing trend. The land price there has even doubled since 2012. Prices for arable land range from €2.500 to €10.000 per hectare, but land prices above €8.000 per hectare are outliers. Prices are expected to rise by another 2018% in 10. This is because a lot of land is currently being sold; more than 2017 hectares were sold in 100.000. There are also many international investors active in Romania.
Dairy farmers in particular are emigrating
It is mainly dairy farmers who choose to emigrate. The share of arable farmers (of all emigrating farmers) is approximately 35%. "The low grain prices are sometimes sufficient reason for arable farmers to investigate the possibility. Because the construction plan in the Netherlands is more intensive (compared to other countries), this does require a significant transition for arable farmers," says Dorresteijn.
Interfarms, Farms4sale and Van der Slikke note that there has been more interest in emigration in recent months. Dorresteijn mentions the phosphate rights as the main reason. "This system is an incentive for many livestock farmers to emigrate. In other countries they do not have to deal with phosphate rights."
Easier to emigrate
"Farmers are starting to think more quickly about emigration. There are also farmers who have businesses in both the Netherlands and Germany. For arable farmers, the balances for carrots in Germany, for example, are more attractive than in the Netherlands. Since borders mean little, the step to set up a business in Germany is has become less important," says Aalberts.
Rising land prices are also an argument. In 2016, the Netherlands had on average the most expensive agricultural land within the European Union (€63.000 per hectare). That is 24% more than was paid 5 years ago.