Hello, forestry enthusiasts and forest owners!

This time, we delve into one of the key topics affecting our activity – the prices of agricultural lands, including forests. At first glance, it may seem that they don’t directly impact us, the forest owners, but their significance is actually great and very tangible. The price of forest lands can influence the profitability of our investments in forestry machinery among other factors.

Agricultural lands are not only the basis for food production but also a key environment for forest growth. We increasingly face challenges brought by the changing environment, climate change, and the need for sustainable forest management. In this context, the importance of agricultural land prices especially stands out.

Photo 1: Slovenian agricultural land prices rank fifth in the European Union by height.

High prices of agricultural lands can affect our possibilities for development and preservation of forests. When land prices are too high, it naturally becomes harder to purchase new forest lands, lands for establishing new forests, or for expanding existing ones. This can limit our ability and desire to restore forest ecosystems or to carry out necessary measures to protect forests from diseases and pests.

Furthermore, high prices of agricultural lands can also impact the profitability of our investments in forestry equipment and machinery. If the land price is too high, we may find ourselves in a situation where it’s hard to justify investments in new machines or technology that would improve our productivity in the forest.

Photo 2: The prices of forest lands can also indirectly affect the profitability of our investments in modernizing our forestry machinery. The image shows Tajfun’s forestry trailer GAP with an installed hydraulic crane Tajfun DOT.

AN ANALYSIS OF AGRICULTURAL LAND PRICES CAN GREATLY ASSIST IN PLANNING AND ADJUSTING OUR FOREST MANAGEMENT STRATEGIES AND IN INVESTING IN THE MODERNIZATION OF OUR FORESTRY MACHINERY.

On the other hand, rising prices of forest lands can also mean an increase in the value of our forests and thus the wood assortments we have in our forests. In this context, investing in new forestry machinery for harvesting or processing logs can be very welcome. With updated forestry machinery such as modern logging winches, hydraulic cranes, forestry trailers, and also firewood processors, you can increase your productivity and efficiency in forest work.

ANALYSIS OF AGRICULTURAL LAND PRICES IN THE EU IN 2022

Below, we summarize a review of agricultural land prices in the European Union in 2022, comparing them to the prices from the previous year. According to Eurostat statistics, the average price for a hectare of agricultural land in the EU was 10,578 euros in 2022.

Photo 3: Display of agricultural land price statistics in the EU for 2022 (source: Eurostat)

The most expensive agricultural lands have been in Malta since this island state joined the EU, as the price is also determined by the limited supply of natural resources. In 2022, the price of agricultural land in Malta increased the most in the entire EU, by 28.24% to 233,230 euros per hectare.

It was followed by the Netherlands with an average price of 85,431 euros per hectare, where in the most expensive Dutch region (Flevoland), the price reached 150,644 euros, and in the cheapest, the Dutch part of Friesland, 66,051 euros. Luxembourg was in third place with an average price of 42,720 euros per hectare, followed by Ireland with an average price of 38,013 euros and relatively small differences across regions.

In Luxembourg, the price decreased by 10% from 2021 to 2022, while in the following countries, it increased; in Ireland by a percentage, and in Slovenia by a little more than 4 percentage points.

SLOVENIAN AGRICULTURAL LANDS FIFTH MOST EXPENSIVE IN THE EU

Slovenia ranked fifth on the list of countries with the most expensive agricultural lands in 2022. The average price of agricultural land for the entire country was 23,282 euros, with significant price differences in individual regions; the average price in eastern Slovenia was 20,075 euros, while in western Slovenia, it was 39,494 euros.

Slovenia thus leads significantly ahead of the next country, Greece, where the price per hectare was “only” 13,571 €.


The price change in Spain is also interesting, which changed by as much as 26 percentage points compared to the previous year, with prices falling from 12,938 € to 10,163 € per hectare. However, it is worth noting that the data for Spain are somewhat special, as they also include prices for lands in the Canary Islands, where prices reach significantly different values than in mainland Spain.

Conversely, the Czech Republic, Bulgaria, Poland, Estonia, and Slovakia stand out, where prices have greatly increased. In Spain, it’s more of a correction, as the price from 2020 rose almost exactly by as much as it fell in 2022, so the prices actually returned to the level from 2020. The Czech Republic has overtaken Poland with its increase, and in both, the increase in price is also a result of demand from neighboring Germany.

CHEAPEST AGRICULTURAL LANDS IN THE SOUTHERN COUNTRIES

At the bottom of the list among the 21 EU member states that reported data to Eurostat was Slovenia’s southern neighbor, Croatia. It’s important not to overlook the fact that prices in Croatia have been slowly but steadily rising since joining the European Union. Data are available from 2015, when the price was 2,726 € per hectare of agricultural land, and prices have been growing on average by four percentage points. In 2022, the price per hectare of agricultural land in Croatia was 3,700 euros, slightly more than in 2021, when the average was 3,661. The price was naturally lower in the extensive agricultural plains of Pannonian Croatia, while in the Adriatic part in 2022, it was significantly higher, at 5,202 euros.

Slightly higher price levels were in Latvia, Slovakia, Lithuania, Hungary, and Estonia in 2022. Agricultural land was also relatively inexpensive in the European agricultural powerhouse, France. On average, a hectare in the country cost 6,130 euros, with a price range in the country’s regions from just under 2,700 euros to more than 12,000 euros.

BY MONITORING TRENDS IN LAND PRICES, WE CAN BETTER PREDICT HOW THE MARKET WILL DEVELOP

where there may be opportunities for investment. Understanding the dynamics of prices allows us to manage our forests more thoughtfully and successfully and to adapt to changing circumstances. Therefore, it’s important to remain aware of their impact and to continuously learn and adjust to new conditions.

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