WHY YOU SHOULD SELL AGRICULTURAL LANDS
The prices to farming land have increased almost fourfold over the last 10 years. One of the reasons for such drastic growth was Estonia joining the European Union in 2004, following which the agricultural enterprises started to receive benefits. The benefits allowed the manufactures to expand more quickly and to invest into the most important aspect – the land. The prices for land also started to grow under the conditions of severe competition. The peak was witnessed in 2013 when the ULB (Uniform Land Benefit) was more than 114€/ha, and the cost of agricultural land in some regions reached 4600€/ha. This high productiveness sphere attracted new manufactures, and Europe started to witness surplus of agricultural production affected by the sanctions imposed by Russia that prevented export of agricultural products in the eastern direction. Surplus production automatically meant decrease of prices for land. Besides the product prices decrease, the Uniform Land Benefit will also be decreased in the future according to the Plan of Agricultural Development in Estonia for 2014–2020. All of this will affect the land value. It is better to sell it now at a better price than later at extremely low prices!
- It is difficult to control on your own
Land farming using Your own efforts is a complicated process. If the owner wishes to take care of its land independently, the owner will need equipment and machinery which are expensive to maintain. Besides, it requires substantial knowledge of this sphere, energy and time. We have everything that is needed as our scope of work is extensive and the purchasing price is high.
Lease of agricultural land is not a fairly efficient investment. If the land owner wants to lease its field, it is necessary to consider that the lease rates may not reach more than 100€/ha subject to income and land tax to be paid. For instance, if You have a plot of agricultural land with area of 4 ha, and at present its price is 10,000€, then You’ll get 300€ of income per year. If You want to deposit the sum from the land sale for a fixed period of time in a bank (for instance, at 6% per year), then the profit will amount to 600€.
PURCHASE OF AGRICULTURAL LANDS
At present, the selling prices for agricultural land vary within the range of 1500 euro to 4000 euro for a hectare, and the lease price for the same amount equals to 30-100 euro. We determine the price of agricultural land in compliance with possibilities of its use, soil properties and location. Additional information in relation to the lessees, co-owners and other aspects will help us to determine the fair price.