In France, an increase in the cost of agricultural land in 2022

Agricultural land sold at exorbitant prices in 2022 and its artificialization fell to its lowest point “for thirty years”the rural land regulator announced on Thursday during the presentation of its annual report.

According to the National Federation of Land Development and Rural Settlement Companies (FNSafer), the average price of agricultural land and free unbuilt meadows has started to rise again compared to 2021 (+ 3.2%) to reach 6 130 euros per hectare, a record since 1997. The volume of vacant and leased areas sold, which amounts to 480,000 hectares (+2.7%), also reached ” a peak “ since 1994.

However, the price differences are increasingly significant depending on the nature and location of the land: the federation is finding more and more difficulty in finding a buyer for certain dairy farms, or for land that is not not possible to irrigate.

In addition, the proportion of farmers who buy these lands and meadows (51% in 2022) has “vocation to diminish” with the rise of agricultural exploitation and land holding companies, which can bring non-farming partners into the capital and have acquired in 2022 around 24% of the areas sold.

“Decrease in the urbanization market”

According to Loïc Jégouzo, deputy director of studies at FNSafer, the price of wine estates soared in 2022 “in Val-de-Loire Centre, Champagne, Burgundy”while that of vines in the Bordeaux appellation fell for the fourth year.

Emmanuel Hyest, president of the federation, welcomed the “fall in the urbanization market”and the fact that the different actors “integrate the fact of protecting agricultural land”.

In 2022, some 20,000 hectares were sold to be transformed into housing or business areas, a figure “at the lowest for thirty years”with a fall in the volume of surface area intended for urbanization estimated at 46%.

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The total number of rural land transactions (agricultural land, forests and country houses) fell by 6% compared to 2021, a drop equivalent to that of their sale price, whose total value reached 46.2 billion euros. euros.

Disposals of shares and shares of agricultural companies increased in an unprecedented way in 2022, with a 25% increase in transactions (for a value of 3 billion euros), just before the entry into force of the law Sempastous at the start of the year, supposed to better regulate access to agricultural land in the face of the appetites of investment companies.

The World with AFP