1. Luxembourg, 25 June 2009 1 Meeting of the Task Force “Agricultural land prices and rents” 25 June 2009

2. EUROSTAT - Unit E2 2 Data availability

3. EUROSTAT - Unit E2 3

4. 4 Aim of the target methodology  To collect comparable statistical information on the prices and rents of agricultural land for agricultural use in the European Union as land is a primary resource in agricultural production.  To make comparisons among Member States on the level and on the trend of agricultural land prices and rents (selling, purchasing price /rental price).

5. EUROSTAT - Unit E2 5 General remarks  Frequency and time schedule for data delivery The frequency of agricultural land price and rent data provision is annual (270 days after the end of the reference year).  Geographical coverage Sources of data used should allow information to be provided at least at NUTS II level.  EU 27 data aggregation The aggregation of the land prices and rents is made by calculating a weighted average using the national data converted into Euro and the information on area provided by the latest Farm Structure Survey (FSS) by category of land (arable land, permanent grassland).

6. EUROSTAT - Unit E2 6 EU agricultural land price statistics The aim of these statistics is to reveal the value of one hectare of agricultural land in the reference period (calendar year). Agricultural land price can be collected from the owner of agricultural land who is selling agricultural land for agricultural use (selling prices) or from the person purchasing agricultural land for agricultural use (purchase prices). Field of observation The price of one hectare of agricultural land sold/purchased for agricultural use. The field of observation should include the arable land and/or permanent grassland sold to (or purchased from) private owners or estate agencies who sell land for agricultural use and should exclude the transaction for non agricultural purposes (lifestyle buyers, construction sites etc.) and the transactions of land between relatives.

7. EUROSTAT - Unit E2 7 Category of land  Arable land - land worked (ploughed or tilled) regularly, generally under a system of crop rotation. irrigable arable land – arable land area which could be, if necessary, irrigated in the reference year using the equipment and the quantity of water normally available on the holding non-irrigable arable land - arable land area which cannot be irrigated due to the lack of water for irrigation on the holding.  Permanent grassland - land used permanently (for five years or more) to grow herbaceous forage crops, through cultivation (sown) or naturally (self-seeded) and that is not included in the crop rotation on the holding.

8. EUROSTAT - Unit E2 8 Price of agricultural land Is the price received/paid by the holder in free trade without the deduction of taxes or levies (except deductible VAT) and without the inclusion of subsidies. The selling/purchase price of land should: include the value of related levies/taxes (other than deductible VAT); exclude the value of any monetary compensation received by farmers for the sales/acquisition of the Utilized Agricultural Area; exclude the value of any building on the sold/purchased agricultural land ; exclude inheritances transfers;

9. EUROSTAT - Unit E2 9 EU agricultural land rent statistics The agricultural land rent represents the price of renting one hectare of agricultural land in the reference period (calendar year). The renting prices can be collected from the owner of agricultural land who is renting out the land for agricultural use (renting prices received) or from the person renting the agricultural land for agricultural use (renting price paid). Field of observation The renting price of one hectare of arable land and/or permanent grassland rented out/rented for agricultural use is proposed as observation unit (field of observation should exclude the transactions of land between relatives).

10. EUROSTAT - Unit E2 10 Category of land  Arable land - land worked (ploughed or tilled) regularly, generally under a system of crop rotation. irrigable arable land – arable land area which could be, if necessary, irrigated in the reference year using the equipment and the quantity of water normally available on the holding non-irrigable arable land - arable land area which cannot be irrigated due to the lack of water for irrigation on the holding.  Permanent grassland - land used permanently (for five years or more) to grow herbaceous forage crops, through cultivation (sown) or naturally (self-seeded) and that is not included in the crop rotation on the holding.

11. EUROSTAT - Unit E2 11 Rent of agricultural land As no distinction is made taking into consideration the renting contract/agreement duration, all new rents for land (even if the land is rented for more than one year) should be taken into account. The rental price of agricultural land should: include the payments in kind valuated at the current year price exclude the rentals of buildings or dwellings situated on it and any other expenses related to other assets except the agricultural land (current maintenance expenditure on buildings, buildings insurance, depreciation of buildings, rents paid for the professional use of non-residential buildings etc.)

12. EUROSTAT - Unit E2 12 Reference period of the results  The agricultural land prices should represent the average price of the sold/purchased arable land (irrigable and non irrigable), and permanent grassland in a calendar year.  The agricultural rents should represent the average renting price for new rents of the arable land (irrigable and non irrigable) and permanent grassland in a calendar year. (the allocation to the calendar year should follow the time for contracting).

13. EUROSTAT - Unit E2 13 Data sources for land prices and rents  Direct observation of land prices and rents by category of agricultural land described in the target methodology (data collection can be made through separate surveys or to be integrated into the surveys system which already exists in the Member State).  Statistical data collection via a network of experts – "expert estimates“ (could involve experts from the regional statistical offices, local representations of the ministries of agriculture, agents from the real estates agencies at the regional level, agricultural advisory service etc).  Use of administrative data (the information from administrative sources is often subject of significant underreporting and dose not provide any breakdown by type of land).