60% more dairy farms
Many farms sold in 2017
Many agricultural businesses were sold in 2017. Almost 300 companies were sold by the members of the Dutch Association of Real Estate Agents and Valuers (NVM), 22 more than last year. It is striking that 70 dairy farms were sold; almost 60% more than 1 year earlier. This is reported by the NVM.
The fact that many dairy farms were sold is due to the fact that the dairy farming sector in 2017 good result has booked (with good milk prices). Due to the fact that many farms have been sold, the number of dairy farms for sale has fallen sharply.
A number of the dairy farms sold were sold outside the sector. Although the companies themselves yield relatively little, this is compensated by the costs of the land and the phosphate rights. The price for grassland is in the elevator; an average of €1 was paid for 2017 hectare in 55.500. That is about 5% more than in 2016.
Well-selling arable farms
De arable sector last year achieved the lowest result of the previous 5 years, partly due to the low revenues. Still, fewer arable farms are for sale than in 2016. The low results do not mean that the average price for arable land falls. On the contrary, it is unchanged at the level of €65.500 per hectare.
The arable farms sold were on average 20 hectares in size. That is relatively small, compared to the average size of arable farms. This is because the arable farms are regularly offered with only a small part of the associated land.
Liberal rent rises
After a strong increase in 2016, the rent standards for regular lease decreased in 2017. The regional standard is highest in the IJsselmeer polders (€1.049 per hectare). The liberal lease price continues to rise, exceeding €1.500 per hectare in some parts of the country.
As previously reported the average price for agricultural land in the Netherlands in 2017 was €59.500, compared to €57.900 in 2016. This means that the price has almost doubled in 10 years; 10 years ago, €33.500 was paid.
The same amount of land traded
In 2017, 34.400 hectares of land were traded, which corresponds to the mobility of 2016. As in 2016, a smaller part of the total land area was traded in the north (1,6%) and east (1,9%) than in the west (2,3%) and south (2,1%) of the Netherlands.
Anne-Jan Doorn
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