How much did land cost in 2021? The price of land has started to rise again by + 30%, driven by an increase in the trading activity, despite the real value of the land assets continuing to decrease (-12% compared to 2010).
This also happens due to the increase in the inflation rate (cost of living) which in 2022 will approach the record of the last 30 years in Italy (+ 9% approximately).
This is the photograph that emerges from the investigations by the researchers of the regional offices of CREA Policies and Bioeconomy with the support of the Council of the Order of Agronomists and Foresters and data published by other official sources.
Increase organic production
In the same year there was also an increase in organic production. By 2030, organic crops will cover over 32 million hectares of Italian land.
The price of agricultural land in 2021
In 2021 the price of agricultural land recorded a 1.1% increase at national level, compared to 2020. The cost of land in the North West, North East and lowland areas, far exceeds the national average price which almost 21,000 euros per hectare.
Dedicating to agriculture in the North East costs 42,300 euros per hectare. A land in the North West is worth 29,100 euros per hectare. In the rest of Italy we are at 15,000 euros.
It is no coincidence that in the same year the credit for the purchase of agricultural properties also increased.
After the setback of 2020 (-42%), it only partially recovered this reduction in 2021, recording an increase of 14%, despite the strong growth in the trading activity.
Agriculture is in crisis and the CAP is not enough
Italy awaits signals from Europe, awaiting the ongoing reform of the CAP (Common Agricultural Policy 2023-2027).
In 2022 there will be the highest data of the increases in production costs, already in place since 2021, as shown by these data from CREA on the land market.
Agricultural producers prefer to rent land
With the exception of areas where agriculture is not very profitable, demand continues to prevail in the rental market, mainly driven in lowland areas, irrigated arable land and suitable for valuable crops.
Rents that remain stable, blocked by the pandemic. This is also confirmed by the data of the ISTAT 2020 Census, according to which the agricultural area rented has further increased compared to the previous census (+ 27% compared to 2010), with 50% of the national UAA cultivated with rental contracts (5 million hectares) and free loan (1.2 million hectares).
The picture that will emerge in 2023 (compared to 2022) will be even more uncertain, due to the increases in production costs, raw materials and energy.
