Agricultural land cheaper on average

The average price for agricultural land in the Netherlands in the third quarter of 2020 is lower than the price for the whole of 2019, according to new figures from Wageningen Economic Research and the Land Registry. The decrease is mainly caused by the lower price of grassland.

For the Netherlands, the average agricultural land price in the third quarter amounts to €60.700 per hectare. That is about 2% lower than the price for 2019, which is €61.900 per hectare. Compared to the price in the second quarter is a decrease visible from 2,1%. This decrease is mainly due to the lower price of grassland with a price reduction of 3,6% to €55.500 per hectare. That is almost 2% lower than the average price for the whole of 2019 (€56.600 per hectare).

The average price for arable land in the third quarter of 2020 remained the same as the price in the second quarter, namely €69.900. This means that this price is also about 2% below last year's level with an amount of €71.200 per hectare. The average price for silage maize land fell by almost 3% to €63.600 in the past quarter.

In addition, both organizations report that 4.700 hectares of agricultural land were traded in the third quarter. This is 100 hectares (or 2%) more than in the same quarter of 2019. In the past 4 quarters, a total of 29.900 hectares have changed hands. This is 4,5% less than in the same period before.

Strong decline in the Northern Netherlands
The average price for 1 hectare of agricultural land in the Northern Netherlands fell sharply in the third quarter. The price dropped from €57.900 per hectare to €52.100 per hectare (-10%). This means that the land price is now also lower than for the whole of 2019, for this period the average price was €54.600. A decrease is also visible in the west of the Netherlands, where the price fell by 3% to €57.000 per hectare. In the second quarter, the price still amounted to €58.700 per hectare.

The highest land price is still paid in the south of the country, although a decrease is visible here too. Over the third quarter of 2020, the price decreased from €71.900 to €70.000 per hectare. Over the whole of 2019, the average land price for the South region is € 71.100 per hectare. The only region with an increase in price is the Eastern part of the country. The average land price here rose by 2% last quarter to €62.000 per hectare.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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