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Farmland prices rise 11% in 2018

Crops

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Farmland prices continued to rise in 2018, increasing by an average of 11%, with the pace of price increases accelerating from 5.6% in 2017, a summary of data published by the Central Statistical Office (KSH) shows, state news wire MTI reports.

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The average price of arable land was up by 10% last year at HUF 1.487 million per hectare. The price of grassland was also up by 16% at HUF 670,000 per hectare.

The price of vineyards rose 14% to HUF 2.44 mln per hectare, for orchards it was up 15% at HUF 1.86 mln per hectare and for forests, it was up 9.9% at HUF 750,000 per hectare.

Last year around 72,000 hectares of land were sold in Hungary, a similar amount to that traded in the previous years.

Most farmland was sold in Bács-Kiskun county, 7,800 hectares, followed by Szabolcs-Szatmár-Bereg and Békés counties, where 7,300 and 6,100 hectares were sold, respectively.

Data show that 42% of cultivated agricultural land was rented out by owners last year, the share was unchanged from 2017. The share of rentals was 55% for arable land, 42% for grasslands and 21% for vineyards and orchards.

Rental prices for arable land were also up in all counties, rising by 2.6-14.1% compared to 2017. The average rental price of arable land in 2018 was up 6.5% annually at HUF 55,700 per hectare.

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