Agricultural Land Prices in the EU
Agricultural land prices in the EU
- In 2022, the average price of one hectare of arable land in the EU was €10,578. This average price was 45 times more than the average annual rental price of €233 per hectare.
- Among the 21 EU Member States for which 2022 data are available, the price of one hectare of arable land varied from a low of €3,700 on average in Croatia to €233,230 on average in Malta.
- At the regional level, the highest prices for arable land were in the Dutch region of Flevoland (an average €150,644 per hectare), while the lowest was in the Swedish region of Övre Norrland (an average €2,041).
Figure 1: National and regional average prices of arable land (in € per hectare, 2022)
Source: Eurostat (apri_lprc)
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.
Figure 2: National and regional agricultural land rent prices (in € per hectare of arable land and/or permanent grassland, 2022)
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).
- Agricultural land rents refer to the price of renting one hectare of agricultural land without buildings or plantations for one 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
- Policymakers 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.).
- Absolute prices help to properly assess how the farmland 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.
SDGs, Targets, and Indicators
SDGs Addressed or Connected to the Issues Highlighted in the Article
- SDG 1: No Poverty
- SDG 2: Zero Hunger
- SDG 11: Sustainable Cities and Communities
- SDG 15: Life on Land
Specific Targets Based on the Article’s Content
- SDG 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property.
- SDG 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers, including through secure and equal access to land.
- SDG 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums.
- SDG 15.3: By 2030, combat desertification, restore degraded land and soil, including land affected by desertification, drought, and floods, and strive to achieve a land degradation-neutral world.
Indicators Mentioned or Implied in the Article
- Average price of one hectare of arable land in the EU
- Average annual rental price of arable land per hectare
- Price of one hectare of arable land in specific EU Member States
- Regional average prices of arable land
- Average price of one hectare of permanent grassland in the EU
- Price of one hectare of permanent grassland in specific EU Member States
- Average rental price of arable land and/or permanent grassland per hectare
- Rental prices of arable land and permanent grassland in specific EU Member States
- Rental prices of agricultural land in specific EU regions
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property. | – Average price of one hectare of arable land in the EU – Average annual rental price of arable land per hectare |
| SDG 2: Zero Hunger | 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers, including through secure and equal access to land. | – Average price of one hectare of arable land in the EU – Average annual rental price of arable land per hectare |
| SDG 11: Sustainable Cities and Communities | 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums. | – Average rental price of arable land and/or permanent grassland per hectare – Rental prices of arable land and permanent grassland in specific EU Member States – Rental prices of agricultural land in specific EU regions |
| SDG 15: Life on Land | 15.3: By 2030, combat desertification, restore degraded land and soil, including land affected by desertification, drought, and floods, and strive to achieve a land degradation-neutral world. | – Average price of one hectare of arable land in the EU – Average price of one hectare of permanent grassland in the EU |
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Source: ec.europa.eu
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