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Background Land market
Today 11:40 am – Jurphaas Lugtenburg
High demand is driving up the price of agricultural land further. In the first half of 2023, the average price for arable land increased by 10.6% compared to the same period a year earlier, the real estate agents’ association NVM writes in a semi-annual report on the agricultural land market. Yet all that glitters is not gold. High interest rates and strict requirements from banks do not ignore the agricultural land market.
The average land price in the first half of this year is €76,000 per hectare. The land price has therefore increased by 4.3% compared to 2022. The average price for arable land is €89,300 per hectare and for grassland at €68,300 per hectare, the NVM has calculated. Prices for arable land are rising faster than for grassland. We find the most expensive land in Flevoland, with an average price above €100,000 per hectare.
Rising costs
In the first half, 32 dairy farms were sold. The average sales price decreased slightly compared to 2022 to approximately €3 million. The NVM calls the prospects for the market for dairy farms bleak. Many companies have been labeled as peak loaders. They are confronted with higher costs due to changes in their business operations. Increased interest rates and stricter requirements from banks also drive up the costs of (re)financing. Livestock farming yields are under pressure due to lower dairy prices. The NVM expects that more entrepreneurs will stop or want to move their company due to these factors. In the Netherlands or abroad.
The brokers’ association expects that the impasse on the pig farm market can be broken in the near future. The conditions for the national termination scheme for livestock farming locations are known. That finally means clarity. Pig farmers who are considering stopping can participate in the scheme or put their farm up for sale on the open market. The NVM therefore expects that more pig farms will be put up for sale in the near future. Six pig farms were sold in the first six months of 2023.
Jurphaas Lugtenburg
Is an editor at Boerenbusiness and focuses mainly on the arable farming sectors and the feed and energy market. Jurphaas also has an arable farm in Voorne-Putten (South Holland). Every week he presents the Market Flash Grains
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