It's essential to know the price of land in your region before you set about buying a farm.
Here are the official statistics on farmland prices in France in 2022.
After a year of decline in 2021 (-2.3% to €5,940/ha), the price of agricultural land rose in 2022 by 3.2% to €6,130/ha. We analyse the figures provided by the SAFER for you (Analysis of rural land markets - June 25, 2023).
The number of transactions recorded by SAFER in 2022 was 106,130, up 2.5% on 2021.
The number of land sales had collapsed in 2020 and had logically rebounded in 2021. It is therefore always difficult to compare figures from one year to the next.
If we compare the volume of sales with 2019 (which was already a record year in terms of volume), the increase is very significant:
While sales to farmers (individuals) will increase (+1.5% in number of sales and +2.5% in surface area), it is above all the number of transactions to agricultural companies that will increase in 2022 (+3.9% in number and +6.5% in surface area). With the exception of 2020, the proportion of acquisitions by companies has been rising sharply for several years.
It should be noted that purchases by non-farmers, which had risen sharply in 2021 (+26% in number and +28% in surface area), fell slightly in 2022 (-1% in number and -5.9% in surface area).
Source: SAFER - Analysis of rural land markets - June 25, 2023
Cumulative inflation from 2018 to the end of 2022 is 10.6%. The average increase in the sale price of agricultural land (2.3%) is therefore insufficient to protect the value of the estate.
Sales of land to companies have been rising sharply for some time. The sale of shares in these companies (on which SAFER's pre-emptive rights are limited) has also been on the increase for several years.
Source: SAFER - Analysis of rural land markets - June 25, 2023
The number of transactions involving agricultural companies has therefore exploded (+25% compared with 2022 and +28% compared with 2019).
In value terms, the increase is even greater (+105% over 1 year and +259% since 2019).
The forthcoming implementation of the Sempastous Law, which will enable SAFERs to monitor sales by agricultural companies, partly explains this sharp increase.
However, this must be qualified for a number of reasons:
The sale price of leased agricultural land is also analysed by SAFER. This land may be sold to the farmer or to a new owner who will continue to rent the land to the existing farmer.
The price of leased land is also up, by 2.9% to €5,060 per hectare. The average discount on rented land is therefore 18% compared with land available for rent. This discount, which was often estimated at 30% on average, has been falling steadily for several years.
Source: SAFER - Analysis of rural land markets - June 25, 2023
Changes in land prices are also analysed according to the type of land, distinguishing between land used for arable farming and land used for beef and dairy farming.
Source: SAFER - Analysis of rural land markets - June 25, 2023
The market for the sale of agricultural land is therefore very dynamic, with record volumes and sharply rising prices. Prices vary by department and region, of course, and will be the subject of a separate article.
You can find references on changes in the sale price of unlet farmland since 2011 and the sale price of rented farmland since 2012 in our blog.
We also publish articles and tables showing price trends by region, department and agricultural zone:
We also devote articles to the price of vines in France and in the various vineyards.
Source: SAFER - Analysis of rural land markets - June 25, 2023 (and previous years)
