Agricultural land prices in the EU
The price of one hectare of arable land in 2021 ranged from a low of €3661 on average in Croatia to €77583 on average in the Netherlands, among the twenty EU Member States for which 2021 data are available. Indeed, the price of arable land in every region of the Netherlands in 2021 was above all other available national averages in the EU in 2021 (see Figure1).
At the regional level, the highest prices for arable land were in the Dutch region of Flevoland (an average €141094 per hectare). By contrast, the lowest was in the Swedish region of Övre Norrland (an average €1882).
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Figure 1: National and regional average prices of arable land (in € per hectare, 2021)
Source: Eurostat (apri_lprc)
Buying arable land was usually more expensive than buying permanent grassland. The price of one hectare of permanent grassland in 2021 ranged from a low of €1423 on average in Bulgaria to €62818 on average in the Netherlands. This was also the case in most regions of the EU. Indeed, arable land was a little over twenty times more expensive on average than permanent grassland on the Greek islands of the North Aegean region (arable land: €37926 and permanent grassland: €1744) and in the Spanish region of Murcia (arable land: €20445 and permanent grassland: €982). The Spanish regions of Asturias (€8096 / €9536), Madrid (€7621 / €7946) and the Lithuanian region of Sostinės (€3805 /€4055), stand out as exceptions.
Agricultural land rental prices
Not all land is owned by the farmer working it. Many farmers rent their land, as either a short or long-term business decision. The cost of renting land is another factor that farmers have to absorb in their business. Mirroring the variation in arable land prices, annual rental prices of one hectare of agricultural land (average of arable land and permanent grassland) also vary starkly between countries and regions within countries.
Renting one hectare of arable land and/or permanent grassland was most expensive in the Netherlands (€836 per ha in 2021) followed by Denmark (€547 per ha) and Greece (€459 per ha). With data from 2020, Italy was amongst the countries with the most expensive land rents (€837 per ha). Agricultural land rental prices in 2021 were lowest in Slovakia (€62 per ha), Croatia (€74 per ha) and Malta and Latvia (both €83 per ha).
Among the EU's regions, renting one hectare of agricultural land was most expensive in 2021 in the Dutch region of Flevoland (€1721 per ha), followed by Canarias in Spain (€1119 per ha) and Attiki in Greece (€927 per ha). With data from 2020, Venezia Giulia in Italy (€1714 per ha) would be amongst the regions with the highest rental prices.
By contrast, rental prices were lowest in Mellersta Norrland and Övre Norrland (both €25 per ha) in Sweden, followed by Východné Slovensko (€42) in Slovakia.
Among EU countries that reported specific rental prices for arable land and for permanent grassland, renting permanent grassland was always cheaper than renting arable land. The rent for one hectare of permanent grassland in 2021 ranged from a low of €39 on average in Slovakia to €337 on average in Ireland, compared with rental prices for arable land that varied between €79 and €466 in the same two countries.
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Figure 2: National and regional agricultural land rent prices (in € per hectare of arable land and/or permanent grassland per year, 2021)
Source: Eurostat (apri_lrnt)
Data sources
Agricultural land prices and rents are now being collected on an annual basis and a common methodology has been developed as a basis for comparable statistics. These datasets were made available publicly in 2018.
Key indicators and concepts
Agricultural land prices refer to the price of one hectare of free agricultural land without buildings or plantations during the reference period (a calendar year). Depending on the EU Member State, these prices can be collected from the owner of the agricultural land who is selling (selling prices) or from the physical person/legal person/legal entity who is purchasing the land for agricultural purposes (purchase prices).
Agricultural land rents refer to the price of renting one hectare of agricultural land without buildings or plantations for one year. The renting price should be collected from the agricultural holdings renting the land for agricultural purposes (renting price paid). The reference period is the calendar year.
The prices and rents expressed in national currency are converted into euro by using the corresponding annual exchange rate, to allow comparisons among EU Member States.
Context
Agricultural land values and rents
Policy-makers follow developments in the land market to evaluate the impact of policies on it. Statistics on land prices and rents, expressed as absolute prices, facilitate an insight into various key issues (sales versus rental markets, effect of new users, CAP changes, environmental pressures, etc.). In addition, absolute prices help to properly assess how the farm land value relates to agricultural income and hence whether farms remain viable given changes in agricultural land prices and rents. Furthermore, regional data enable the identification of the situations where land prices are a driving factor in terms of structural change. These policy requirements have driven the need for reliable and comparable data on agricultural land prices and rents.
As an agricultural land market expert, I bring extensive knowledge and experience to shed light on the intricacies of agricultural land prices in the European Union (EU). My expertise is grounded in a comprehensive understanding of the data sources, key indicators, and concepts that underpin the dynamics of this market.
The information presented in the article reflects a nuanced landscape of agricultural land prices across the EU in 2021. The data, sourced from Eurostat, provides a detailed analysis of arable land and permanent grassland prices at both national and regional levels. This granularity is crucial for policymakers and stakeholders seeking to understand the complexities of the agricultural land market.
The article reveals that the average price of one hectare of arable land in 2021 varied significantly among EU Member States, ranging from €3661 in Croatia to €77583 in the Netherlands. Notably, the Dutch region of Flevoland stood out with the highest average price of €141094 per hectare. Conversely, the Swedish region of Övre Norrland had the lowest average price at €1882.
A key trend highlighted is that buying arable land tends to be more expensive than purchasing permanent grassland. This pattern is consistent across most EU regions, with exceptions noted in Spain and Lithuania. The price disparity is notable, reaching over twenty times in some regions, such as the Greek islands of the North Aegean and the Spanish region of Murcia.
The article also delves into agricultural land rental prices, emphasizing that not all land is owned by the farmers cultivating it. Rental costs, mirroring the variation in land prices, exhibit stark differences between countries and regions. The Netherlands tops the list with the highest rental cost of €836 per hectare in 2021, followed by Denmark and Greece. Conversely, Slovakia, Croatia, Malta, and Latvia report the lowest rental prices.
Further analysis of regional rental prices reveals intriguing insights. The Dutch region of Flevoland again leads with the highest rental cost, followed by Canarias in Spain and Attiki in Greece. On the other hand, Mellersta Norrland and Övre Norrland in Sweden, along with Východné Slovensko in Slovakia, report the lowest rental prices.
The article concludes by emphasizing the importance of reliable and comparable data on agricultural land prices and rents for policymakers. This data, collected annually with a common methodology, facilitates the evaluation of policy impacts, assessment of land market dynamics, and understanding the relationship between farm land value and agricultural income.
In summary, the article provides a comprehensive overview of agricultural land prices in the EU, showcasing the intricate variations at national and regional levels. This information is crucial for policymakers, researchers, and stakeholders aiming to navigate the complexities of the agricultural land market.
