Monitoring developments on farmland markets Presentation by C. Stewart, Eurostat on Agricultural Land Prices and Rents (ALPR) statistics Workshop on Farmland Market Regulations – DG FISMA 3 June 2019 eurostat
Policy context • • Agricultural Land Prices and Rents (ALPR) data is important for DG AGRI, especially for the CAP and policy debates on direct payments and regional models. • • Monitoring is important, not least because price and rent levels can create a barrier to new entrants, especially young farmers. 1. • Eurostat is aware of DG FISMA’s interest in ALPR statistics with respect to monitoring national regulations of agricultural land markets and their compliance with EU law. 2. • Data on agricultural price and rent levels across the EU are important to help understand the developments of the agricultural land markets. 2 • Eurostat
Brief history of agricultural land prices and rents statistics • • Situation prior to 2009 not adequate; data collection dropped. 1. • Actions undertaken 2009+ by Eurostat resulted in an agreed Common Methodology first established in 2010, used as basis to develop more comparable LPR statistics. 2. • Much work done since 2011 to develop these new statistics. 3. • By February 2018, data (though not always complete sets) had been received from 23 Member States for the period 2011-2016. These data were released together with their metadata on 21 March 2018. A news release supported this publication. 3 • Eurostat
Brief history of agricultural land prices and rents statistics 1. • All of the above work, since a common methodology had first been introduced, was carried out under gentlemen's agreements. 2. • A formal (European Statistical System - ESS) agreement came into force January 2019. This acts as stop gap until ALPR can be included under a future regulation. 19 MSs have subscribed to this but some others also provide data. 3. • Regular production can be considered as established. 4. 4 • Eurostat
1. Statistics on agricultural land prices and rents Agricultural land rents http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=apri_lrnt&lang=en Agricultural land prices 5 http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=apri_lprc&lang=en Eurostat
2. 1. Figures on ALPR (2017 price of arable land, 1000 Euro/ha) 100 120 140 20 40 60 80 0 Netherlands Luxembourg Italy United Kingdom Ireland National average, with | minimum and maximum regional (NUTS 2) averages Denmark Slovenia Spain Greece Poland Eurostat Finland Sweden Czech Republic France Bulgaria Hungary Lithuania Slovakia Croatia Latvia Estonia Romania 6
1. Figures on ALPR (2017 rent of agricultural land, Euro/ha/year) 2. 2.000 1.500 1.000 500 0 Italy Netherlands Denmark Greece Ireland Austria Luxembourg Bulgaria Finland France Hungary Sweden Spain Slovenia Czech Republic Lithuania Croatia Estonia Latvia National average, with | minimum and maximum regional averages 7 Eurostat
Current issues and challenges 1. • As ALPR regular production was only launched in 2018, these are still quite new statistics. There are still gaps. 2. • Eurostat has received land price statistics from 22 Member States covering 85.5% of EU28 area under arable land and permanent grassland. 3. • Statistics on agricultural land rents were transmitted by 19 Member States, representing 63.0% of EU28 rented agricultural area, and Norway. 8 Eurostat
Current issues and challenges 1. • Some countries currently working on various developments: 2. - BE is investigating price data sources 3. - DE is developing land prices and investigating usable data source for land rents 4. - FR developing NUTS1 rents 5. - IT developing data collection from rent register 6. - CY and MT face problem of small number of transactions 7. - PT challenged by quality of administrative information 8. - RO trying to move towards formal basis for data collection 9. - AT working on legal basis to collect land prices 10.However, planned new regulation (SAIO) will require all MSs to comply. The missing countries are aware of this. 9 Eurostat
Current issues and challenges 1. • New statistics mean that there are typically still methodological challenges such as comparability issues which can only be addressed on an ongoing longer term basis. 2. • This highlights the need for metadata to accompany regular production data to help support interpretation, including the limitations of making comparisons between MSs or regions. 3. • Eurostat strongly recommends that metadata be referred to by users as this may help explain any limitations of currently available data. 10 Eurostat
ALPR statistics to be included in future SAIO regulation • Eurostat's strategy for agricultural statistics for 2020 and beyond aims to replace currently 10+ agricultural statistics regulations and other legal instruments with just three: • Integrated Farm Statistics (IFS) for farm structure, orchards and vineyards – in force as Regulation (EU) 2018/1091 • Economic Accounts for Agriculture (EAA) – satellite accounts of national accounts, to be updated further • Statistics on Agricultural Input and Output (SAIO) with four implementing regulations for crops, animals, agro-environmental statistics and prices including ALPR – under development 11 Eurostat
Steps towards ALPR in the SAIO Regulation 1. - Eurostat is developing handbook to replace existing Common Methodology. It would also form the basis upon which agricultural land prices and rents would in future be covered by SAIO. 2. - Improvements to the methodology description could be made in the future by taking account of both feedback received from the Member States on issues they have been encountering and good practices identified in the metadata to be collected. 3. - SAIO foreseen for 2023(?). ESS agreement remains in force until that time. Efforts at improvements (including coverage) will continue in parallel. 12 Eurostat
Other statistics at Eurostat. Farm Structure Statistics (FSS) provide information on: 1. • Number of agricultural holdings 2. • Legal personality of the holder 3. • Land use and area (crops) 4. • Livestock 5. • Main crops 6. • Farm Labour Force (incl. age, gender, relationship to holder) 7. • Economic size of the holdings 8. • Specialisation (farm type) 9. • Other gainful activity on the farm 10.• System of farming 11.• Machinery 12.• Organic farming 13.Helps monitor trends and transitions in the structure of EU farms 13 Eurostat
Other statistics at Eurostat. Farm Structure Statistics (FSS) provide information on: 1. • Physical and economic s ize of farms with how much rented land, specialization, what kind of livestock, the age of the farmers, etc. Data can be combined to indicate what kind of farmers are, for instance, most active in renting land. Can be done to NUTS2 level. 2. • Holder of the agricultural holding is the natural person, group of natural persons or legal person on whose account and in whose name the holding is operated and who is legally and economically responsible for the holding. This gives an indication of ownership structure, where land is own farmed (but not if land is rented). 3. • Family activity remains a predominant factor in farming. Nine in every ten people who worked regularly in agriculture in the EU were the sole holder (farmer) or members of his/her family in 2016. 14 Eurostat
Other statistics at Eurostat. National Accounts information: 1. • There are data on the stock of land by country, broken down by institutional sector (households, government, etc.), in current prices. 2. • Land comprises agricultural land, land underlying dwellings, and land underlying other buildings. However, this is not broken down further so no data are available for agricultural land only. 3. • Moreover, for valuation of land, different estimation methods are acceptable, based to a greater or lesser extent on land price estimates. Limited info is available on methodology applied by MSs at central level. 4. • Most farmland would normally be in the household sector. This is derived from the limited information Eurostat has, crossing NACE code A with the sectors (cross classification of fixed assets). 5. • Available data in Eurostat’s database are by total economy and by sector. There are gaps, as data are voluntary except for household sector. 15 Eurostat
Basic links: 1. https://ec.europa.eu/eurostat/web/agriculture/overview 2. https://ec.europa.eu/eurostat/web/national-accounts/overview 16 Eurostat
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