Prices of agricultural land highest in Southern Finland in year 2023

The statistics of the Natural Resources Institute Finland (Luke) on land purchase prices and agricultural land rents indicate that prices of agricultural land were highest in Southern Finland in 2023, while the year before they were highest in Western Finland. More land purchases were made in 2023 than in the previous year, with the number of purchases increasing from 540 to 600. Agricultural land rents have remained stable in recent years, with the exception of Southern Finland where rents have clearly fallen.

No significant trend in the number of land purchases

In 2023, slightly fewer than 600 land purchases were made, whereas the corresponding figure was roughly 540 in the previous year. The highest number of land purchases (235) was made in Western Finland. There were 152 land purchases in Southern Finland and 158 in Northern and Eastern Finland in 2023.

The number of land purchases has fluctuated on both sides of 600, and no significant trend in the number can be seen.

Prices of agricultural land highest in Southern Finland

“In 2023, Southern Finland had the highest prices for agricultural land, with the average price per hectare being EUR 10,366. It was followed by the Helsinki–Uusimaa region, where the price of agricultural land per hectare was EUR 10,296, and Western Finland with prices at EUR 10,019 per hectare. Prices paid for agricultural land per hectare were significantly lower in Northern and Eastern Finland at EUR 5,686,” says Anu Koivisto, Senior Statistician at Luke.

In addition to the location, the price of agricultural land depends on various other factors such as the size of the land area sold, the size and shape of parcels, the type of soil, any rocks in soil, drainage, eligibility for subsidies, suitability for the production of special crops, other potential uses, overall demand in the region, and the general financial situation.

Large regional differences in agricultural land rents

“Rented land accounts for roughly 38 per cent of the total utilised agricultural area, and the percentage has increased significantly during the last ten years. Examined by major region (NUTS 2 region), land rents have developed fairly evenly in recent years, with the exception of Southern Finland where rents have decreased more steeply than in the other regions,” Koivisto says.

An examination at the level of smaller regions shows significant differences between agricultural land rents. In 2022, rents were highest in the region of Ostrobothnia, being EUR 345 per hectare on average. Correspondingly, the lowest rents were in Lapland at EUR 54 per hectare. Agricultural land rents are largely affected by the same factors as purchase prices, even though regional supply and demand have a significant impact on the level of rents.

In Mainland Finland, relatively the most rented fields are in Kainuu, accounting for 48 per cent of the total utilised agricultural area, while the corresponding figures are 46 per cent in Lapland and 45 per cent in South Savonia. The lowest percentage of rented fields is in Northern Ostrobothnia (33 per cent), Southern Ostrobothnia (35 per cent) and Ostrobothnia (36 per cent).

Background to the statistics

The statistics on the purchase prices of agricultural land are based on the National Land Survey of Finland’s (NLS) purchase price statistics data. The dataset includes purchases of unbuilt arable land that have been confirmed by a public purchase witness and cover an area of at least two hectares. Transactions between relatives have not been taken into account. The statistics on agricultural land rents are based on Luke’s farm accounting data. The NLS’s most recent data are from 2023 and the profitability accounting data are from 2022. The area of rented agricultural land is based on Luke’s statistics on the structure of agricultural and horticultural enterprises.