Purchase of German farms<\/p>\n
Project Description<\/p>\n
I. Core Positioning of the German Farm Market<\/p>\n
The most significant difference between the German agricultural land market and those of other Western European countries lies in the strict regulatory intervention on agricultural land ownership to prevent land speculation and structural damage. Each federal state has approval-free thresholds for agricultural land transactions (except in Turin, where approval is required for transactions exceeding 2,500 square meters), and non-farmers face the risk of being rejected when purchasing agricultural land and the risk of agricultural structure promotion companies (Siedlungsgesellschaft) exercising their right of first refusal.<\/p>\n
Germany's agricultural structure is highly diversified\u2014of the approximately 271,000 farms, about 70% are family-run small and medium-sized farms, while large, corporately managed, high-value farms are mainly concentrated in Lower Saxony, Schleswig-Holstein, Bavaria, and other regions.<\/p>\n
II. Price Range and Regional Distribution<\/p>\n
(a) Average price of agricultural land (2025\/2026)<\/p>\n
The average price of agricultural land in Germany is projected to be approximately \u20ac35,000\u2013\u20ac38,000 per hectare (equivalent to \u20ac3.50\u2013\u20ac3.80 per square meter) for 2025\/2026. However, agricultural land prices in Germany exhibit significant regional variations.<\/p>\n
High-value areas: Parts of Lower Saxony, North Rhine-Westphalia, and Bavaria, with high soil quality (Ackerzahl), arable land prices can reach \u20ac50,000\u2013\u20ac80,000 or more per hectare. Mid-to-low-price areas: Brandenburg, Saxony-Anhalt, Mecklenburg-Western Pomerania, and other former East German states, where some arable land prices are \u20ac8,000\u2013\u20ac20,000 per hectare (East German farmland prices are still about half that of West Germany), and there is a large amount of leased land. Exceptionally high-price areas: In parts of Thuringia, due to supply and demand imbalances, farmland purchase prices increased by 181 TP3T year-on-year in 2025\u20132026, prompting local farm groups and politicians to push for stricter regulations and a possible referendum.<\/p>\n
Agricultural land price forecast (2025\u20132035): It is expected to rise by 0.1 TP3T\u201320.1 TP3T in most parts of Germany, and up to 40.1 TP3T in some areas.<\/p>\n
(ii) Whole farm price<\/p>\n
The price of a complete farm (including farmhouses, livestock sheds, storage facilities, and agricultural machinery) is much higher than the price of bare land. See the following example for reference:<\/p>\n
\u2022 A 406-hectare irrigated farm in Lower Saxony: integrating pastures, water supply systems, and complete dairy infrastructure (including a 60-position rotary milking parlor), with the option to acquire the dairy cows and continue operations.
\n\u2022 Approximately 6.87 hectares of farmland in Brandenburg: Listing price includes 5.951 TP3T VAT.
\n\u2022 A 1.53-hectare plot in Saxony-Anhalt: comprising four fields, classified as arable land.<\/p>\n
III. Market Dynamics in 2026<\/p>\n
1. The Agricultural Structure Strengthening Act and Tightened Approval Thresholds: Thuringia is pushing for stricter agricultural land regulations due to rapidly rising farmland prices (up 181 TP3T year-on-year in some areas), including tighter regulation of share transfers to prevent circumvention of land transaction laws. The agricultural productivity purchase price index is expected to decrease by 2.31 TP3T year-on-year in the second quarter of 2025, indicating some easing of input cost pressures.<\/p>\n
2. East Germany\u2019s leased land market faces competition from photovoltaics: Since 2023, farmers have increasingly leased land to large solar park operators, while government subsidies and high energy prices have stimulated the expansion of photovoltaics.<\/p>\n
3. Continued reduction in agricultural land: Over the past few decades, Germany's agricultural land has been shrinking, being converted into residential and transportation land. If the key targets for 2030 are achieved, the reduction in agricultural land is expected to exceed 300,000 hectares by 2030.<\/p>\n
4. Strong Demand for New Talent in the Industry: The average age of German farmers is over 50, and approximately 40% agricultural enterprises will need new operators in the next decade. Germany implements subsidies through CAP (approximately \u20ac6.3 billion per year from 2023 to 2027) specifically to attract young farmers to the agricultural sector.<\/p>","protected":false},"excerpt":{"rendered":"
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