A study done by Belgian bank KBC in 2017 calculated that over 35-40 years, farmers only have the capacity to pay back 25.000 – 30.000 euro per hectare.
But if we look at the average price in 2019, we’re already at 46.778 euro!
Prices also range per province, from 42.382 euro in Limburg to 64.561 euro in West Flanders.
If we look at the annual rental price of the same size, that was 309 euro in 2017.
So if you’re the landlord, it would take 151 years to turn a profit.
From the outside it seems that the prices are too high.
It’s clearly not the economic capacity that’s fuelling the higher prices, but it’s unclear what is. Speculation is the easiest answer.
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