THE LIBERALISATION DECREE WILL HELP YOUNG PEOPLE. RENT AND LAND PRICES DOWN BY 5-10%

 

Analysis by the Fieragricola Observatory on the eve of the event set to open on Thursday 2 February

 

It is estimated that the sale of at least 50% of the 338 thousand hectares of land owned by the State will help cut land rent and purchase prices by 5-10%. Even higher downturn in areas destined to production of commodities. A more or less imperceptible impact (-2% max.) in wine-making areas characterised by production excellence.

 

Verona, 31 January 2012.   Albeit with a different impacts in different parts of the country, the liberalisation decree will have a positive effect for young agriculturists and active agriculturists. The Fieragricola Observatory (the exhibition is scheduled 2-5 February at VeronaFiere, www.fieragricola.it) in short estimates that the sale at least 50% of about 338 thousand hectares (data analysed by Coldiretti based on ISTAT sources) of agricultural land owned by the State would help reduce prices to rent and purchase land by 5-10%, with even higher peaks in particular areas destined for the production of commodities.

This will naturally ensure significant benefits for new agricultural entrepreneurs entering the market and help strengthen existing realities.

In particular, certain areas in the Po Plains may benefit, where prices of land and rents have increased significantly in recent years, essentially driven by the spread of bio-energy (as also in other areas of Italy, starting from Puglia) and the restrictions imposed by the Nitrates Directive.

A more or less imperceptible impact (max. 2%) will be seen as regards lower prices in area with a vocation for production excellence, especially vineyards. In these areas, the effect of the liberalisation decree will be so limited on the impact of rent and land prices as to be irrelevant.

 

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