In 2024, the average price of 1 hectare of arable land in the EU was an estimated €15 224, an increase of 6.1% compared with 2023 (€14 343), according to a recent report from Eurostat.
The average annual rental price of arable land and permanent grassland was an estimated €295 per hectare, an increase of 6.4% compared with 2023 (€277).
This information comes from data on agricultural land prices and rents published by Eurostat today.
Among countries with available data, the highest average price for 1 hectare of arable land was in Malta (€201 263), followed by the Netherlands (€96 608) and Portugal (€76 556).
The lowest average arable land prices were recorded in Latvia (€4 825 for 1 hectare), Lithuania (€5 590) and Slovakia (€5 823).
Renting 1 hectare of arable land was most expensive in the Netherlands, at an average €941 a year, followed by Denmark (€580) and Greece (€509).
By contrast, land rental prices were lowest in Slovakia (€69), Croatia (€76) and Malta (€92).
The average annual rental price of arable land and permanent grassland was an estimated €295 per hectare, an increase of 6.4% compared with 2023 (€277).
This information comes from data on agricultural land prices and rents published by Eurostat today.
Among countries with available data, the highest average price for 1 hectare of arable land was in Malta (€201 263), followed by the Netherlands (€96 608) and Portugal (€76 556).
The lowest average arable land prices were recorded in Latvia (€4 825 for 1 hectare), Lithuania (€5 590) and Slovakia (€5 823).
Renting 1 hectare of arable land was most expensive in the Netherlands, at an average €941 a year, followed by Denmark (€580) and Greece (€509).
By contrast, land rental prices were lowest in Slovakia (€69), Croatia (€76) and Malta (€92).
In 2024, the average price of one hectare of arable land across the European Union rose by 6.1% to an estimated €15,224, up from €14,343 in 2023. This reflects continued upward pressure on farmland values amid factors like demand for productive land, inflation, and investment interest in agriculture.The average annual rental price for arable land and permanent grassland also increased by 6.4% to €295 per hectare (from €277 in 2023).Significant national variations persist:Highest prices: Malta led with €201,263 per hectare, followed by the Netherlands (€96,608) and Portugal (€76,556).
Lowest prices: Latvia recorded the cheapest at €4,825, followed by Lithuania (€5,590) and Slovakia (€5,823).
Rental costs showed similar disparities, with the Netherlands highest at €941 per hectare annually, followed by Denmark (€580) and Greece (€509).The data, drawn from Eurostat's agricultural land prices and rents statistics, highlights stark inequalities across the EU, with arable land generally more expensive than permanent grassland in most countries. This trend underscores ongoing challenges for farmers in high-cost regions and opportunities in more affordable eastern and central European markets. Full details and regional breakdowns are available in Eurostat's datasets.
Lowest prices: Latvia recorded the cheapest at €4,825, followed by Lithuania (€5,590) and Slovakia (€5,823).
Rental costs showed similar disparities, with the Netherlands highest at €941 per hectare annually, followed by Denmark (€580) and Greece (€509).The data, drawn from Eurostat's agricultural land prices and rents statistics, highlights stark inequalities across the EU, with arable land generally more expensive than permanent grassland in most countries. This trend underscores ongoing challenges for farmers in high-cost regions and opportunities in more affordable eastern and central European markets. Full details and regional breakdowns are available in Eurostat's datasets.
Agricultural land prices have risen significantly in recent years (including a 6.1% increase in EU arable land in 2024 to an average €15,224 per hectare), and this "inflation" (sharp upward pressure) stems from a mix of global and regional factors. Here's why it's happening:Farmland is seen as a safe, long-term asset — it acts as an inflation hedge (its value often rises with or faster than general prices), provides stable returns through food production, and appeals to investors during economic uncertainty, high inflation periods, or stock market volatility. Institutional and foreign investors have poured money in, treating it like a diversification play similar to gold or real estate.Limited supply drives competition — Good farmland is finite and rarely comes up for sale in large quantities. In many places (US Midwest, Europe, parts of South Africa), listings are down (e.g., 25% lower in some US reports), while demand stays strong from expanding farmers, developers, or buyers converting land for non-farm uses (housing, commercial, industrial).
This scarcity pushes prices higher even when farm profits dip.Expectations of future income — Buyers bet on long-term productivity gains from better technology (e.g., precision farming, AI, irrigation), rising global food demand (population growth, dietary shifts), and climate-resilient land. Even with softer commodity prices in 2024–2025 (e.g., lower grains), strong livestock returns, government aid (disaster payments in the US), and bumper harvests in some regions support values.Low interest rates historically (and lingering effects) made borrowing cheap for land purchases, while government policies (subsidies, environmental buyouts, or nature conservation schemes in Europe) reduce available land and bid up remaining parcels.Regional pressures — In the EU, high demand in western countries (Netherlands, Denmark, Malta) contrasts with cheaper eastern land, but overall averages rose due to productivity expectations and investor interest. Globally (US, parts of Europe), development pressure (urban sprawl) and conversion to other uses add upward force.
In South Africa, while not as sharply inflated recently, land values face policy debates (reform, B-BBEE), but good seasons and export growth provide some support.In short, it's not just one thing — it's scarcity + investor appeal + food security bets + policy/development forces outweighing short-term farm income dips. Prices have cooled or stabilized in some areas (e.g., US growth slowed to 4.3% in 2025), but the long-term trend remains upward because fertile land is irreplaceable and food demand keeps growing.
