News Lease prices

Rent standards 2018 are falling almost everywhere

24 May 2018 - Anne Jan Doorn - 6 comments

The highest allowable lease prices for 2018 are falling in almost all areas compared to 2017. Carola Schouten (Minister of Agriculture, Nature and Food Quality) announced this in a letter to Parliament. The decrease is mainly caused by lower operating results in 2016. The new lease standards will take effect from 1 July.

Only in the IJsselmeer polders an increase in the rent standards can be seen (+7%). This means that the standard in 2018 will be €1.125 per hectare. In all other areas the standard is falling; with an outlier in the Southern Livestock Area, where the standard falls by 34%.

Sharp declines can also be seen in the Waterland and the Droogmakerijen, where the rent standard falls by 29%. The rent standard (at €296) is therefore by far the lowest in that area. In the River Area (-27%) and the Central Livestock Area (-26%) the standard also drops considerably.

Standards for commercial buildings pluses
The standards for commercial buildings and agricultural homes have also been established. For agricultural business buildings, the highest allowable lease prices and the lease price for existing agreements will be increased by 1,46%.

In addition, the maximum rent increase for agricultural homes with lease agreements (before 1 September) will increase by 3,9%. The highest allowable lease price for agricultural homes with lease agreements (after 1 September) will be increased by 1,4%.

Declaration
The new lease standards have been established on the basis of the period 2012 to 2016. As a result, 2011, 2016 was a relatively good year. The year XNUMX was characterized by lower operating results, especially for dairy farming. As a result, the rent standards show a decrease.

The time period also explains why the rent standard in the IJsselmeer polders has risen. This area largely consists of arable farming, where the results do not deviate significantly from the results from 2011. Also in 2017 rent standards fell.

Lease price area Regional standard 2018
(per hectare)
Regional standard 2017
(per hectare)
Change
2017 - 2018
Bouwhoek and Hogeland €653 €677 -4%
Peat Colonies and Oldambt €640 €743 -14%
Northern Pasture Area €586 €796 -26%
Eastern Livestock Area €608 €755 -19%
Central Livestock Area €467 €633 -26%
IJsselmeer polders €1.125 €1.049 7%
Western Holland €548 €653 -16%
Waterland and Reclaimed Areas €296 €414 -29%
Dutch/Utrecht Pasture Area €706 €932 -24%
River area €631 €861 -27%
Southwestern Arable Area €505 €513 -2%
Southwest Brabant €740 €781 -5%
Southern Livestock Area €550 €838 -34%
South Limburg €718 €878 -18%

Source: National government.

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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.
Comments
6 comments
Subscriber
tinus 24 May 2018
This is a response to this article:
[url=http://www.boerenbusiness.nl/ondernemen/grond/ artikel/10878640/pachtwaarden-2018-dalen-almost-overal][/url]
A maximum of 1237 euros can be paid in the Ijsselmeerpolders. (1125+10%)
Einstein 24 May 2018
And they curse at those polder farmers here on this forum, but why should the rent standard go up here? Maybe because there really is being done herejQuery211022269825686224276_1527156736263
Agri 24 May 2018
It is very simple the rent standards are a reflection of the financial result in the different areas. And in the polders there is generally a lot of hard work going on.
Grower 24 May 2018
And don't forget the windmills. I recently heard that also count in the lease standard.
Subscriber
Jiminy Jo 24 May 2018
The rent with us in the Flevopolder is low, I am also a tenant myself. I'm certainly not going to turn it into property, I can't farm cheaper.

I have been converting my profit into real estate since 1995, our turnover from the rent and sale of real estate is higher than the farm.

Just renting out tulip land is a cashier.
I expect the potato pool to be lower this year, I got rid of onions on time, beets were fine. All in all, I have an average year.

it's true that the mills count, the cream is gone. We all have to remediate here and go together in 1 project. In the beginning I was enthusiastic but this has turned around.
We have a board that plays dirty games, misleads, intimidates and withholds information.

I am not so happy with this project anymore. It is 1 big hate and envy the atmosphere is well ruined among themselves.

Other than that, it's fine farming here, you won't hear me complaining......
lessor 27 May 2018
Hi, where are those entrepreneurs? It is ridiculous that the government annually determines the rent standards for regular rent. The real estate company of the Government receives much higher amounts through free registration. Apparently it is better to deal with free entrepreneurs who nevertheless see possibilities to pay a decent rent. The tenancy system is increasingly becoming a fraud that no longer fits in these days of free enterprise.
sef
Berry 28 May 2018
If a tenant thinks that with the current system the lease price is too low and the return is higher elsewhere, there is an option to sell the land and try luck elsewhere. This will put an end to the land price bubble and eventually everything will be in calmer waters. The liberal lease by the government is a flop. High prices are paid. Subsequently, the rules laid down are flouted to get it done and no action is taken. If this is the future....
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