Lease prices for German farmland rose again in 2023
Lease prices for German farmland rose again in 2023 Yahoo Finance
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Rental Prices for Agricultural Land in Germany
Introduction
Rental prices for agricultural land in Germany have risen significantly in recent years, reaching an average cost per hectare last year of €357 ($381), according to government figures released on Friday.
Regional Differences
Last year’s average rents are a 9% increase over 2020, when rent for a hectare stood at €329, according to Germany’s Federal Statistical Office.
According to the report, there were major regional differences in rents.
- An average lease fee of €99 per hectare was estimated for the state Saarland, which borders Luxembourg and France.
- An average of €560 was due in the state of North Rhine-Westphalia further north.
- In Lower Saxony (€548), Schleswig-Holstein (€479), and Bavaria (€415), rental fees were also significantly higher than the national average.
Sustainable Development Goals (SDGs)
The issue of rising rental prices for agricultural land in Germany is relevant to several Sustainable Development Goals (SDGs), including:
- SDG 1: No Poverty – Ensuring affordable access to agricultural land can help alleviate poverty and promote economic growth.
- SDG 2: Zero Hunger – Access to affordable land is crucial for food security and sustainable agriculture.
- SDG 10: Reduced Inequalities – Addressing regional differences in rental prices can contribute to reducing inequalities.
- SDG 11: Sustainable Cities and Communities – Ensuring affordable access to agricultural land can support sustainable urbanization and rural development.
Farm Ownership and Size
In 2023, around 85% of farms in Germany were sole proprietorships, just over half of which were operated as a sideline by a farmer with another job as well. Those farms tended to be small, averaging 46 hectares.
Bigger businesses, including partnerships, corporations, and other kinds of companies, made up the rest. But those farms tended to be more than three times as large, averaging 176 hectares per farm – and together farm about 39% of all agricultural land in Germany.
SDGs, Targets, and Indicators
-
SDG 1: No Poverty
- Target 1.4: 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.
- Indicator: Rental prices for agricultural land in Germany have risen significantly, indicating potential challenges for small-scale farmers and the poor in accessing and affording land resources.
-
SDG 2: Zero Hunger
- Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, particularly women, indigenous peoples, family farmers, pastoralists, and fishers.
- Indicator: The increase in rental prices for agricultural land may impact the income and productivity of small-scale food producers, potentially hindering progress towards doubling their incomes.
-
SDG 8: Decent Work and Economic Growth
- Target 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance, and financial services for all.
- Indicator: The rising rental prices for agricultural land may pose financial challenges for farmers, potentially affecting their access to financial services and their ability to invest in their businesses.
-
SDG 11: Sustainable Cities and Communities
- Target 11.3: By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated, and sustainable human settlement planning and management in all countries.
- Indicator: The regional differences in rental prices for agricultural land highlight the disparities in land access and affordability between different states, potentially impacting the sustainable development of rural communities.
-
SDG 15: Life on Land
- Target 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.
- Indicator: The increase in rental prices for agricultural land may incentivize unsustainable land use practices, such as intensive farming or conversion of agricultural land to other purposes, potentially contributing to land degradation.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | Target 1.4: 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. | Rental prices for agricultural land in Germany have risen significantly, indicating potential challenges for small-scale farmers and the poor in accessing and affording land resources. |
| SDG 2: Zero Hunger | Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, particularly women, indigenous peoples, family farmers, pastoralists, and fishers. | The increase in rental prices for agricultural land may impact the income and productivity of small-scale food producers, potentially hindering progress towards doubling their incomes. |
| SDG 8: Decent Work and Economic Growth | Target 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance, and financial services for all. | The rising rental prices for agricultural land may pose financial challenges for farmers, potentially affecting their access to financial services and their ability to invest in their businesses. |
| SDG 11: Sustainable Cities and Communities | Target 11.3: By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated, and sustainable human settlement planning and management in all countries. | The regional differences in rental prices for agricultural land highlight the disparities in land access and affordability between different states, potentially impacting the sustainable development of rural communities. |
| SDG 15: Life on Land | Target 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. | The increase in rental prices for agricultural land may incentivize unsustainable land use practices, such as intensive farming or conversion of agricultural land to other purposes, potentially contributing to land degradation. |
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Source: finance.yahoo.com
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