News Farmland
Belgian nobility still large landowner
The nobility is still the largest private landowner in Belgium. An increasing group of industrialists, however, have discovered land as an investment. This is according to research by the Apache research site. Based on leaked land registry data, the website compiled a top 500 of largest private landowners.
The first 50 places are mainly occupied by noblemen and their companies or foundations. This is followed by dozens of industrialists who sometimes own more than 400 hectares of agricultural land. With a few exceptions, farmers can be found in the lower regions of the top 500, with an average of 75 hectares.
Fixed investment
It is not surprising that companies in the agri-food chain own farmland. Many of these companies originated from a farm that started by processing agricultural products itself. But there is also interest in land from companies further down the chain, or those that have no direct relationship with agriculture at all. The reasons for these companies to invest in arable land are very diverse. This includes securing the supply of raw materials, controlling costs or controlling the cost price. For some, land is also a safe investment. They see it as a stable investment with a small, but acceptable return.
Agricultural land costs an average of €54.000 per hectare in Flanders, Apache reports. Land is the most expensive in the south of West Flanders, a region with intensive vegetable cultivation. Prices above €100.000 per hectare are no exception. According to Apache, these prices are not in proportion to the yields realized in agriculture. It is difficult for the (family) farms to buy land. However, this development does not have to be bad for the agricultural sector. For example, some agro-industrialists choose to lease the land to the best-skilled farmers as part of their business model.
"It is relevant to gain insight into the players that are active in the land market," says Anna Verhoeve, researcher at the Institute for Agricultural, Fisheries and Food Research. "The new players often have motives other than the traditional ones. It is important to investigate the relationship between ownership and use. It is precisely in the use that the effects are found for society."
Jurphaas Lugtenburg
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