Western Cape agricultural land prices 2018 Statistics offer interesting insights

by Riaan Nowers – Agricultural economist

Agricultural land – one of the most discussed and controversial topics in recent times. Land ownership and access to agricultural land play an emotional, political and motivational role in all spheres of life in South Africa. Fluctuating commodity prices, rising input and labour costs, variable exchange rates and transferable agricultural land all influence land acquisition and retention decisions, which in turn have a serious impact on potential land transactions and transfers.

Economists at the Western Cape Department of Agriculture (WCDoA) capture annual farm transactions in the Western Cape in an electronic database in order to track some relevant trends, which inform rational policymaking and managerial decisions. The following infographics demonstrate farm transactions in the Western Cape during 2018 in comparison with previous years:

What the figures tell us

• The number of agricultural land transfers increased by 7,4% between 2017 and 2018.

• The percentage of agricultural land transacted during 2017 and 2018 remains higher than the 4,9% long-term average.

• Agricultural land value decreased by 32,3% during 2017 and by 32,6% during 2018 when compared to the previous years.

It is important that the reasons for the increase in agricultural land transacted and the lower land values be researched and not speculated on. AP