Agricultural land is becoming increasingly valuable and Flevoland clay is the most expensive in the entire country. In our province, the average land price is almost 145,000 euros per hectare, with peaks of 200,000. This is evident from figures from the Land Registry, which were investigated by NVM Makelaars. But what does this mean for the farmers? Are they all filthy rich?
According to agricultural organization LTO Noord, the rising land price is usually only beneficial at one time. If you own the land and sell it, you can make good money from it. But most farmers do not want to sell their land at all, they just want to run their business.
‘Dry bread from golden plate’
Johan Zandbergen, an estate agent at VSO Makelaars in Dronten, also does not think that farmers often benefit from the high land price. “It’s not like they’re filthy rich,” he says. The land is worth a lot of money, but it is a challenge to make a living from it. That is the daily practice that the farmer has to deal with. We sometimes say: eating dry bread from a golden plate, that’s pretty much it.
Real estate agent Johan Zandbergen
Multiple causes of price increase
There are several reasons why agricultural land in Flevoland is worth the most, according to LTO Noord. It is fertile soil, the infrastructure is good, you have large, neat plots and the drainage is in order. This ensures beautiful crops and yields. This makes the agricultural land popular.
The fact that prices have almost doubled in some cases over the past five years is mainly due to scarcity. Farmers have to invest and therefore grow, they want more land. In addition, agricultural land is also purchased for other purposes such as housing or roads. And because prices are rising, it is also a good investment for parties such as ASR and Rabobank, investors are interested in it. All this puts pressure on the market, causing the price to rise.
Leasing is becoming more expensive
Flevoland farmers do not always own their land themselves. About 40 percent is leased, a form of renting. A high land price is then a disadvantage for farmers, says real estate agent Zandbergen. The lease price partly depends on the rental price. The rental price for loose arable or grassland has increased by about 30 percent compared to last year.
Problems with takeover
But that’s not the biggest problem. This occurs in the event of a possible takeover. It is increasingly difficult for a son or daughter to take over the farm. “With the current market price, that is absolutely not possible,” says Zandbergen. You might be able to finance 30 percent, he says.
There are arrangements to transfer the company at a lower price, but this means that the majority of the assets end up with one successor. If there are brothers and sisters, they have to agree to this and that can lead to difficult situations.
The high land price certainly does not appear to be a blessing for all farmers.
The Paradox of Flevoland’s Agricultural Goldmine
Ah, Flevoland — a place where the soil is so rich even the worms are contemplating retirement! But while agricultural land prices are skyrocketing like a rocket-fuelled goat, what does this actually mean for our farming friends? Are they lounging on piles of cash, sipping cocktails on golden plates, or are they just struggling with the weight of their own rich soil? Let’s dig in!
The Shocking Price Tag
According to the latest revelations from the Land Registry, the average land price in Flevoland has hit a staggering 145,000 euros per hectare, with some plots going for as high as 200,000 euros. But wait, before you start imagining farmers in top hats and monocles celebrating their newfound wealth, let’s consider the reality: Despite the glittering prices, owning land doesn’t make you rich on its own.
Farmers: The Reality Behind the Glitter
Yes, you heard me right, folks! According to the agricultural organization LTO Noord, high land prices often translate to nothing more glamorous than a financial game of musical chairs. “Eating dry bread from a golden plate,” is how real estate agent Johan Zandbergen puts it. Sounds fancy until you realize the “golden plate” is just an expensive dinner you can’t afford to eat!
Why is Flevoland Land So Hot?
Let’s talk about what makes Flevoland’s soil the Beyoncé of farmlands. It’s fertile, well-drained, and boasts prime infrastructure. You could say this land is the Beyoncé of the agricultural world—flawless, sought-after, and cannibalizing everyone’s chances at a sustainable career. As the demand for farming grows, so accordingly does the value of this precious dirt. But here’s the kicker: While prices have nearly doubled in the last five years, farmers themselves are left with the short end of the stick.
Leasing Woes: A Case of a Bad Relationship
What about the 40 percent of farmers who lease their land? Well, if you thought owning land was hard, leasing just adds another layer of complexity to this already messy relationship. With rental prices going up by 30% compared to last year, it’s safe to say that farmers are in for a penny, but definitely not a pound! Just when they thought they were in a relationship with their land, it turns out they’ve been in an abusive one; precarious and expensive!
The Next Generation: A Very Scary Climb
Now, I’d like to shift the spotlight to our next crop of budding farmers: their children. Taking over the family farm? Increasingly difficult. With land prices riding like a bucking bronco, financing a takeover becomes a Herculean task! Sure, there are some enticing options to pass the property on at a lower price, but that usually leads to family feuds reminiscent of a reality TV series. “Oh, but mom gave the farm to him!” Cue the dramatic music and surprised gasps.
What’s Next for Our Farmers?
So, what’s the final takeaway from our little tour through Flevoland’s agricultural wonderland? The high land prices are certainly not a blessing for all farmers, and while some dream of golden plates, many find it a daily struggle. They might not be filthy rich, but they sure are rich in challenges, grappling with sharp increases that could easily make anyone question their career choice.
In the end, whether it’s selling land or passing on the family farm, one thing is clear: Farming in Flevoland is a complicated affair, and sometimes it takes a bit of cheeky observational humor to reveal how serious the situation really is. Until next time, when perhaps, we’ll uncover the secrets of turning that golden plate into a thriving farm!
