The price of a hectare of agricultural land is rising this year. Several parties compete for the scarce pieces of land. There are worries for young farmers, who get harder to keep their heads above water.
The run on agricultural land in the province leads to a sharp rise in agricultural land prices. In 2024 the amount for a hectare on average was around 74,000 euros throughout the year, it has already risen to 82,500 in the second quarter of this year, figures from the Land Registry show.
This is the average price of arable and grassland. Grassland is generally cheaper than arable land, because there are more options in arable land.
The price increase will also continue this summer, notes agricultural broker Bert Koomans of Koomans Makelaardij from Drouwenerveen. “The market for agricultural land is comparable to the housing market: prices have risen with tens of thousands of euros in a few years,” he says.
Colleague Harry Nijborg of Agrrplaza Tynaarlo confirms this image. “Hectares are already being sold for more than 100,000 euros. It is of course of all times that the price rises. And this year something has been added.”
As a result, agricultural land is becoming scarce, while demand for it is growing. For example, there is a need for a place for solar meadows, windmills and new construction of houses. Investors are also interested. “There is cluttering from different sides of agricultural land,” says Nijborg of Agriplaza Tynaarlo.
In addition, farmers must lose their manure on the land. This becomes more difficult due to new stricter manure rules, which means that farmers have more manure than they can put on their own country. They can have that removed, but that is expensive. So some farmers choose a different solution: buy extra land. Then they can lose their manure.
So everyone wants to have land. “The price no longer increases gradually, but is in acceleration,” says Arend Steenbergen, the provincial chairman of LTO Noord. “There are so many different parties on the market. And they all need land. It is just the wild west.”
Young entrepreneurs in particular get extra difficult, Steenbergen sees. Farmers who take over their parents’ business see the perspective on an attractive business model crumbling. If the land price rises, the company becomes more expensive. “It must still be financially to be brought up,” he says. “The company must be profitable, but the cost price is higher. That can lead to extra headaches with a transfer within your own circle, that can be guessed. Because how do you translate the higher value to a reasonable price to your loved ones?”