Land market: sharp decline, but little trade

The average price of agricultural land has fallen by 7,6%, bringing the price now to €58.200 per hectare. After a decrease in the first quarter, the price also shows a decrease in the second quarter. Incidentally, less land was traded, according to figures from Land Registry and Wageningen Economic Research.

Due to the drop in the second quarter of the year, the price is 4,4% lower than the average price for the whole of 2018. At that time, the price was €60.900 per hectare. Although the land price has fallen sharply this year, it must be said that significantly less land was traded in the first half of 2019, according to the report. quarterly report.

In the second quarter of this year, approximately 22% less land was traded than in the second quarter of last year: 7.100 hectares versus 9.100 hectares. However, this is not the case only this quarter, because the share of traded land has been declining for some time. In the last 4 quarters, 31.900 hectares changed hands, which is 10% less than in the same period last year (35.400 hectares).

Price of arable land falls most sharply
It is striking that the price for arable land has fallen more sharply than the price for grassland. The average price for grassland fell by 6% compared to the first quarter, while the price for arable land fell by 9%. An average of €54.700 was paid for grassland, which means that the price is approximately 2% lower than in the whole of 2018 (€56.000). Bouwland changed hands for an average of €65.700. That is no less than 5% lower than the average price of €68.900 that was paid over the whole of 2018.

If we look at the prices per part of the country, it appears that the price of land has fallen sharply, especially in the North part of the country (-12% compared to the previous quarter). An average of €49.100 per hectare was paid in the second quarter. Over the whole of 2018, the average price in this part of the country was €53.700 per hectare. However, 4% less acreage was traded in the last 16 quarters than in the 4 previous quarters.

West region remains stable
The only part of the country where the price of land has hardly fallen is that part of the country West† In that region, the land price has remained virtually stable and is worth €59.300 per hectare. This is even higher than the annual average for 2018, which is €57.500 per hectare. In the South part of the country, the price fell by 6% to €67.900, while in the East part of the country a decrease of 4% is visible. The price fell from €63.400 in the first quarter to €61.100 per hectare in the second quarter.

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.

aj.doorn@boerenbusiness. Nl

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