Farm Ireland
Independent.ie

Wednesday 24 October 2018

Ireland has the fifth most expensive farmland in Europe

On average, the Netherlands recorded the most expensive purchase price of one hectare of land in the EU in 2016 €63,000.
On average, the Netherlands recorded the most expensive purchase price of one hectare of land in the EU in 2016 €63,000.
Ciaran Moran

Ciaran Moran

Irish land prices are the fifth highest in Europe while land rental prices are the fourth highest, according to a new Eurostat statistics.

At €21,257/ha Irish land prices were only exceeded in the Netherlands, Italy, Luxembourg, and the UK.

On average, the Netherlands recorded the most expensive purchase price of one hectare of land in the EU in 2016 €63,000.

Indeed, the price of land in every region of the Netherlands was above all other available national averages in the EU.

Land was cheapest in Romania, with a hectare costing an average €1,958 in 2016.

The level of land prices depends on a number of national (laws), regional (climate, proximity to networks) and localised factors (soil quality, slope, drainage etc.) as well as the market forces of supply and demand (including influence of foreign ownership rules).

Source; Eurostat
Source; Eurostat

As such, it is interesting to note developments in prices for regions over time.

From the data available, the strongest growth in land prices of arable land between 2011 and 2016 was in the Czech Republic (a three-fold increase), Lithuania, Estonia, Latvia and Hungary (a two-fold increase). Prices rose in other Member States too, albeit at much lower rates.

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In almost all regions, buying arable land was more expensive than buying permanent grassland (as much as 20 times more expensive in the Greek islands of Voreio Aigaio).

Likewise, buying irrigable arable land was more expensive than non-irrigable arable land (as much as six times more expensive in the Spanish Región de Murcia).

Land rental prices

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 (arable or permanent grassland) also vary starkly between Member States and regions within Member States.

land rental prices eu.PNG
Source: Eurostat

Average rental prices in Ireland in 2016 was recorded at €291/ ha for one year the fourth highest price in Europe.

Renting one hectare of agricultural land was most expensive in the Netherlands (an average €791 for the year), with the highest regional average in Flevoland (NL) being almost twice the national average €1,536 for the year.

Renting agricultural land was cheapest on average in Latvia €46/ha per year, although the cheapest regions in the EU for renting were Mellersta Norrland and Övre Norrland in Sweden €28/ha per year.

As with land prices, renting permanent grassland was cheaper than renting arable land.


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