How much does one hectare of farmland cost? It depends on its location and the type of crop it is dedicated to. According to Eurostat, Spain is among the top ten countries in the European Union (EU) with the most expensive prices to buy farmland. In the state as a whole, the average is just over 10,000 euros per hectare. Above are Denmark, Slovenia, Ireland, Italy, Luxembourg and the Netherlands. Perhaps for this reason, mutual funds are launched to purchase rustic properties. The sale of properties reaches a maximum of 15 years and large investors are identified in Spain and Portugal, as prices are much more affordable than in regions such as California or Australia.
Of course, those that are irrigated are much more than those that are rain fed, and those found in vegetable greenhouses, for citrus and vineyards are the most expensive. Rustic plots are an investment for those looking for the long-term and seeking stability. This explains why advisors and advisors recommend them as an integral part of a legacy that balances investment between financial and real estate assets.
And what has happened since the start of the coronavirus pandemic? Land prices remain stagnant in Spain after a slight increase in 2020 compared to 2019. While the brick bubble holds the total and continues to be driven by the housing business (over 33% of the real estate boom stage), the value of rural land has barely moved since the alarm produced as a result of the coronavirus. 19. The purchase price of farmland in Spain increased by only 4.6% between 2011 and 2020. In Spain, according to the Land Price Survey, the average land price (in current prices) during the past year increased slightly by 0.5% from the previous year’s figures and amounted to 10,180 euros per hectare.
This study, published by the Ministry of Agriculture at the beginning of October and corresponding to 2021, reflects, for example, the price difference between the citrus plots of the Valencian Community and those of Andalusia and Murcia. Due to greater investment attractiveness over the last decade due to an agricultural structure with larger properties and lower operating costs. Thus, the value of one hectare to plant oranges, tangerines, lemons or grapefruit in the Community of Valencia rises to an average of 36,173 euros; which is 1.4% less than a year ago. This contrasts with 68,604 Euro/ha (+5%) in Murcia and 45,802 Euro/ha (+3.3%) in Andalusia.
Fiscal year 2021 remains stagnant, although the pandemic year has made the value of citrus farms and other reference crops in the Community of Valencia more expensive. Inadequate revaluation of Valencian rural properties dedicated to orange, tangerine and lemon plantations, quite long after the times of the property bubble, takes place in Spain amid a mild generalized land recovery, particularly in island regions such as the Canary. and the Balearic Islands.
According to sources from AVA-Asaja and Unió Llauradora, the reasons for this stagnation in land prices should be sought to “the lack of profitability that most agricultural production is going through”. And they realize that the prices of Valencia orange plantations are still low compared to their rivals in Murcia and Andalusia. The weaknesses of the Valencian countryside are small estates and little technological implementation, aging of the active population, lack of job attractiveness, little planning and small vertical in the value chain, little professionalism at producer level or historically unrealistic. costs” describes organizations led by Cristóbal Aguado and Carles Peris.
Beyond the prices paid in the Canary Islands (79,001 euro/ha.) and the Balearic Islands (20,272 euro/ha). /ha. and 19.722 Euro/ha, respectively. The Community of Valencia is in fifth place with a rural land value of 19,149 euro/ha.
Vineyards, Rioja leader
Far from the rest of Spain, the Basque Country and La Rioja vineyards are the most expensive on the Peninsula. The Basque viticulture area was paid 47,859 euros per hectare (-2.2% compared to 2020) and the Riojan region was paid 41,315 euros per hectare in 2021, representing an increase of 1% over the previous year. The Community of Valencia (8,453 euro/ha, 1.9% more than the previous year) is far from these figures for the northern territories. In Catalonia -the country of cavas- they paid 20,052 Euro/ha; that is, 3.7% less than a year ago.
If we want to plant rice, we will have to pay 31,176 euros per hectare with a slight downward trend, again an average of 23,228 euros per hectare for falling olive groves. The price increase of 7,869 Euro/ha in Extremadura draws attention. (+3.8%), while falling in Andalusia (-3.3% to EUR 26,810/ha) and Castilla-La Mancha (−1% to EUR 8,914/ha).
Buying tomatoes is more expensive. Thus, irrigated open-air vegetables continue with high numbers (36,175 Euro/ha). And, without a doubt, the most expensive land is the land reserved for vegetables in irrigated greenhouses, listed at 216,085 euros per hectare in 2021 at a slightly higher rate than the previous year.
The community leads the abandonment of fertile land and continues to have the sad honor of being the leader in the national ranking of vacant farmland at 162,902 hectares. The regions that follow it in uncultivated area are Castilla-La Mancha (161,075 hectares), Castilla y León (127,297 ha), Andalusia (126,144 ha) and Aragón (108,634 ha), although they have a much larger area. Spain as a whole reaches 1,027,534 barren hectares.