Trends in the Agricultural, Land and Rental Market in Italy: An Analysis of the Crea-Conaf Annual Report

Agricultural Rentals on the Rise One of the trends highlighted in the report concerns the agricultural rental market, which remains dynamic, especially in the northern regions of the country. Here, demand often exceeds supply, creating a rental-friendly environment. This is a particularly attractive option for young agricultural entrepreneurs, who often face high land costs and rising interest rates.

Moderate Growth in the Sales Market When it comes to the purchase and sale of farms and agricultural land, the report indicates growth of 1.5% in 2022. However, this growth is significantly slower than in previous years. The number of transactions remains above 150,000 per year. Land prices show a greater increase in the regions of the North West (3.2%) and the North East (1.2%), while in the Center and South the increase is more modest (0.5/0.8%) . This gap between regions contributes to a significant difference in average prices per hectare.

Inflation and Reduction of Land Worth Inflation plays an important role in the land market, with a 1.5% increase in nominal prices. However, the increase in consumer prices (8.1%) actually reduced the real value of land assets, bringing it below 80% of the levels observed around 2000.

Challenges in Mortgages and Agricultural Credit The Bank of Italy reports a 6% decrease in agricultural credit disbursements in 2022 compared to the previous year. This contraction is significant, representing a reduction of €350 million compared to the 2016-2019 period. Most agricultural credit is concentrated in the North, and analysts warn of the risk of an increase in bad mortgages due to rising interest rates.

Interest in Quality Farms Agricultural entrepreneurs show a growing interest in farms with good infrastructure, fertile land and located in areas suitable for valuable crops and high-value-added productions such as fine wines. Vineyards, in particular, are at the center of investors' attention, with Barolo leading the way due to the highest prices.

Impact of Agricultural Policies and Climate Change The effect of agricultural policies, including the reform of the Common Agricultural Policy (CAP) and environmental constraints, appears to have been limited on the market. However, climate change represents a threat, with risks of crop losses and increasing insurance costs.

"Start-AgrIT" project To support young farmers, QuidQuid's "Start-AgrIT" project aims to encourage the meeting between supply and demand, provide consultancy support, financial support and enhance Italian agricultural production. The project also focuses on the use of technological innovation to ensure the competitiveness of Italian agriculture.

In conclusion, the Italian agricultural market presents a number of challenges and opportunities, with a growing interest in land and agricultural businesses. However, the sector faces challenges related to inflation, mortgages and evolving agricultural policies as it seeks to capitalize on the opportunities afforded by technological innovation and high-quality manufacturing.