News Farmland
A lot of land traded in the first half of 2018
A relatively large amount of land was traded in the first half of 2018, according to the real estate report of the Dutch Association of Real Estate Agents and Valuers (NVM). Compared to 2017, the land price has increased slightly, but the brokers still describe the market as calm. Leasing can also be more attractive for land users.
In the first half of 2018, an average of €59.900 per hectare was paid for agricultural land. That means the price has dropped slightly relative to the second half of 2017. However, the price did peak in the second half of 2017. Compared to the average for the whole of 2017, the price has increased by €400 per hectare (+2%).
The price for arable land (without the peak of extreme sales in the IJsselmeer polders) remained fairly stable (€66.200 per hectare). The price for grassland also remained stable (€55.900 per hectare). These figures do not include the prices for silage maize land, which averages out at €62.800 per hectare.
Sold a lot of land
About 2018 hectares of agricultural land changed hands in the first half of 19.000. This is 1.000 hectares more than in the first half of 2017 and also more than in the first half of 2015 and 2016. Particularly in the north and east of the country, land mobility has increased, while it has decreased in the west of the country and remained stable in the south of the country.
The price increase of 22% in the south of Limburg is striking. However, in the Waterland and Droogmakererijen area (North Holland), the price fell by 12%. Estate agent Hans Hendriks of Hendriks Agrarische Makelaardij notices that land is scarce in this area and that there are many buyers. However, he does not recognize himself in the image of falling prices.
-Hans Hendriks
Average vs. Reality
Hendriks believes that there is a scarcity throughout North Holland. "The price drop can be caused by plots in the peat meadow area being sold. The plots with a nature destination are sometimes only accessible by barge and therefore have a lower price."
According to Hendriks, the high land price in the Flevopolders means that the price in the Wieringermeer also shows an increase. "If you can get roughly the same land for a lower price, then of course you will also look at the Wieringermeer. This increases the demand in the area." Incidentally, the land price in the IJsselmeer polders meanwhile, after steep increases at the end of 2017.
Quiet market
The NVM brokers describe the land market in the real estate report as calm. This is partly due to the fact that banks are reluctant to finance land and make regular repayments. As a result, there is a lot of demand for leased land, for which large offers are made when tendering. Interest in ground lease is also growing.
The number of arable farms for sale did increase in the first half of 2018. This is because few companies have been sold lately. One problem, however, is that the farms for sale are generally considerably smaller than the average arable farm today (23 hectares).
Fewer dairy farms sold
In addition, many dairy farms were put up for sale in the first half of 2018. About 30 companies have now been sold. Although that is still less than the number of companies that were sold in the same period last year. However, on the other hand, it is approximately equal to the number of companies sold in 2015 and 2016.
The average price of 1 dairy farm in the first half of 2018 was €3,4 million, significantly more than the average for 2017 (€2,2 million). The selling time of 1 dairy farm sold in the first half of 2018 was on average 5,5 months. That is more than 3 months shorter than in 2017. "However, there is little interest in buying an entire company," says Ard Klijsen, chairman of NVM Agrarisch & Landelijk Vastgoed (A&LV).
"This is partly the result of land-relatedness, which means that a company is only allowed to grow under limited conditions. It is also due to the introduction of the phosphate rights system. Since rights are very expensive, financing is often difficult. Banks are reluctant to finance, as a result of which there is a delaying effect or transactions ultimately do not go through at all," concludes Klijsen.
Anne-Jan Doorn
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