Just like in Flevoland, farmers in North Brabant also prefer renting out their land rather than selling it. After all, it ultimately yields more returns. Nevertheless, the market is not standing still on the buyer's side, because more and more private individuals are entering the North Brabant land market. Will this affect prices?
According to various brokers, the agricultural land market in the province of Noord-Brabant is comparable to last year. Companies are still being offered and land is still coming on the market, but it is not very busy on the buyer side. Cropland is the most popular. Of course, the larger the lot, the higher the price. It is noted, however, that the small plots (of less than 2 hectares) are very difficult to sell. However, prices remain firm.
The fact that it is relatively quiet on the North Brabant land market is also because agricultural entrepreneurs (just like in Flevoland) would rather rent out their land than sell it. If they sell their land, they make quick money. The problem is that capital gains tax has to be paid. Renting out the land relieves the farmer just as much and at the same time yields more returns than storing money in the bank.
Multiple parties active
Various real estate agencies in North Brabant also indicate that the land is increasingly being bought by private individuals. Those parties also see it as a return. Incidentally, this appears to be a national trend, according to data from the Dutch Association of Real Estate Agents (NVM). In 2015, 62% of the farms offered were bought by an agricultural entrepreneur. That percentage has fallen to 2020% in 51. In 2020, 16% of companies were purchased by a private individual.
The fact that private individuals enter the market can have a price-increasing effect. Over the first half of 2020, the average price for arable land in North Brabant will be between €74.000 and €76.000 per hectare. For grassland, the price range is between €70.000 and €81.000 per hectare. Today, no major changes are visible. The price range for agricultural land is between €65.000 and €85.000 per hectare.
This makes the price slightly higher than the national average. In the first half of 2020, this will amount to €63.300 per hectare. The price fell sharply in the second quarter of 2020 in particular, as a result of the continuing uncertainty surrounding the nitrogen problem and the economic consequences of the corona crisis.
Stable market expected
No major changes are initially expected for the coming six months, the brokers say. This is partly due to the uncertain liquidity position. Land prices in certain North Brabant areas are also under pressure again. As a result, the willingness to buy decreases somewhat. And in the end, most farmers in this region will also prefer renting to selling as long as interest rates remain negative.