Analysis: Arable land prices in Lithuania

Arable land price in Lithuania goes up.

Average arable land price in Lithuania grew every year in period 2011 – 2018 (see the graph below). In 2018, comparing with 2011, arable land price was 3,2 times more expensive. The biggest increase occurred in period from 2011 to 2016, when the price went up rapidly. The growth in 2017 and 2018, comparing with the previous year, was much slower because of unfavorable weather conditions for agriculture, that resulted in lower income for the farmers.

In 2018 arable land was most expensive in Marijampolė and Šiauliai regions (5090 and 5026 EUR/ha respectively), where the soil quality is very good (see graph below).

In 2018, comparing with 2011, arable land rent price increased 2,2, times, from 60 to 131 EUR per ha. Differently from sales price, rent price was quite stable in period 2011 – 2016. The biggest increase in rent price, comparing with previous year, occurred in 2017, when the price went up from 82 to 124 EUR per ha (see the graph below).

Despite a steady increase in agricultural land price, Lithuania is still among the cheapest countries in the EU (see price comparison by country in the graph below).