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News Land prices

German agricultural land costs 10.000 euros to a ton

16 August 2019 - Redactie Boerenbusiness - 6 comments

The price of agricultural land in West Germany rose by an average of 2018% in 6,9 to an average of €37.846 per hectare. In the states of the former GDR, the price rose only by 0,6% to €15.720.

For the second year in a row, more than €100.000 per hectare is paid in the federal state of Bavaria. Not only in the mountainous Upper Bavaria, but also in the lower NiederBayern. In the vicinity of Münster (North Rhine-Westphalia), the price rose by more than 10% to an average of €85.766 in 2018. In Saarland, which borders France, agricultural land is for sale for next to nothing. The average price there was €9.706 in 2018.  

2,5 times as expensive
When we add up all the federal states, the average price of agricultural land in 2018 comes to €25.485. German farmland has become about 10 times more expensive in 2,5 years. In 2009, an average of €10.570 was paid throughout Germany. In the former GDR, the price rose faster in recent decades than in the western federal states.

In recent years, the value of agricultural land has also increased at an accelerated rate. In 2018, the gain in value has leveled off somewhat for the first time, mainly due to the stabilized price in East Germany. The acreage that changed hands also leveled out slightly. More than 2018 hectares were sold in 85.000, while more than 100.000 hectares per year was normal for a long time. 

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Comments
6 comments
piet 16 August 2019
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/grond/ artikel/10883669/duitse-landbouwgrond-kost-10000-euro-tot-een-ton]German agricultural land costs 10.000 euros to one ton[/url]
Land more expensive and more expensive
Wheat beets onions potatoes always cheap
avenue 16 August 2019
Along the border in NRW, up to 140.000 euros per hectare is paid and not only in Bayern.

The main cause of these high amounts is the biogas installations that are grossly subsidized and which disrupt the market considerably.

So the government basically inflates the price artificially and has nothing to do with the crops grown on it.
hans 16 August 2019
Well, then why are there such differences? Surely it is better to fill a biogas plant with 40.000 soil than with 140.000 soil?
country 16 August 2019
Don't let the discussion about land prices fool you. Sometimes a huge amount for a small piece of what the price thinks to make. Mobility is very low and only continues to fall. everyone who writes about it has his/her interest and is trying to convince someone else. here in Noordfriesland/groningen, some people say that it is unaffordable, while often beautifully light sand is also traded at 60k max. It is more interesting, and I partly deduce from the column that nobody knows what land really costs anymore, and when this moment is reached, the return made is then left. greeting
Agree 17 August 2019
We act like 60k is nothing more. To relieve 1 ha I have to get about 80k before tax. I am sure that few entrepreneurs want to have more than 40k or more taxable income, otherwise you will be finished in eg nl. In other words, you need about 2 years to fully redeem 1 hectare. Career of 40 years means 20 ha if someone is willing to put everything in the ground and regardless of the company size. With some other private expenses you go more towards the 10 to 15 ha. A complete farm requires mega trust in agriculture. Mortgage interest deduction is a mess and nothing changes. Another option is to pay off less and assume that the price will continue to rise, but what if it drops.....
Drent 17 August 2019
pay off ha less, come to the bank with that..
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