News Farmland
Large spread in higher and lower lease prices
The new lease standards that will come into effect from 1 July 2021 have been announced. In 8 of the lease price areas the lease price is lower compared to a year earlier and in 6 areas the lease price is going up. Minister Schouten reports this in a letter to the House of Representatives about the lease standards.
In the area of the Veenkoloniën and the Oldambt, the decrease of 14% in the rent is greatest. In Western Holland and the Hollands/Utrechts meadow area, the lease price falls by 11%. In the southwestern arable area, the lease price has risen the most with 25%, followed by the IJsselmeer polders with 16%.
Major regional differences
"For arable farming, 2014 was a year with a moderate average income nationally," writes Schouten. 2014 has been replaced in the calculation of the rent standard by 2019, in which the average income in arable farming was higher. 2014 was a relatively good year for dairy farming, which has been replaced by the lesser year 2019. However, the average hides major regional differences, albeit slightly more extreme in arable farming than in livestock farming.
The highest allowable lease prices for agricultural commercial buildings is 2,44% higher than in 2020. This percentage is equal to the construction costs index for 2016 up to and including 2020. The maximum rent increase for agricultural homes with a lease from before September 1, 2007 is 0%. This is due to the decision to set the rent increase for social housing at 0%. For agricultural homes with a lease from on or after 1 September, the highest allowable lease price increases by 1,3%, equal to the inflation rate for the 2020 calendar year.
The lease prices are calculated annually by Wageningen Economic Research on the basis of agricultural incomes over a period of the previous 5 years.
Criticism
The Private Land Ownership Federation (FPG) is - just like last year - strongly criticizing the new lease standards. The FPG finds the "lease proceeds disproportionate to tax", the organization reports in a message. "The tax standards are based on the land price. The lease standards, on the other hand, are determined on the basis of the average business results in the agricultural sector over a measured period of five years (now until 2019). These lease standards are therefore also increasingly distant from developments in the agricultural sector. the land market".
The room letter and the lease price calculation are here to find.
Jurphaas Lugtenburg
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