Land price represents the purchase price of an hectare of land for agrarian usage. The amount of money received by the owner (or paid by the buyer) in free commerce, in the reference period (calendar year)

Since 1983, the Ministry of Agriculture, Fisheries and Food, through the Statistical Unit, has been publishing annual results on land prices and national and regional indices.

The fundamental objective is to measure the annual changes in the price level of the most significant land classes, free for sale and intended for agricultural use.

The aggregations, functional and geographic, of the average land prices require identifying classes for the most representative crops based on the existing crop categories, as well as the weighting structure of those categories. The classes (arable land and permanent grassland) and stuctures are adapted to the changes in economic environment through changing basis, 2016 (based upon Farm Structure Survey) being the reference year for the current basis.

This survey is important because of its various uses, e.g. as a reference in operations related to purchase-sale transactions, valuations for expropriations, taxes, etc.

Regarding the territorial classification of the data collection, in Spain the land prices and land rents are provided to the national statistical unit by provinces, this is NUTS 3. Subsequently, these are integrated at the autonomous community level, this it is NUTS 2. Later, they are integrated by groups of autonomous communities that form specific geographic zones, this is NUTS 1. Finally, the geographical zones are integrated at the national level, this is NUTS 0.

The agricultural land rent represents the price of renting one hectare of agricultural land in the reference period (calendar year). The renting prices should be collected from the person renting the agricultural land for agricultural use (renting price paid).

The Ministry of Agriculture, Fisheries and Food, considered it necessary to prepare a specific survey that would reflect the value and evolution of the rents for the most significant land classes and the different Autonomous Communities; as a result, this survey has been developed since 1998 jointly by both administrations.

The classes (arable land and permanent grassland) and stuctures are adapted to the changes in economic environment through changing basis, 2016 (based upon Farm Structure Survey) being the reference year for the current basis.

This survey was especially important as a result of the entry into force of the "Law of Rural Rents" approved on November 26, 2003.

Regarding the territorial classification of the data collection, in Spain the land prices and land rents are provided to the national statistical unit by provinces , this is NUTS 3 . Subsequently, these are integrated at the autonomous community level, this it is NUTS 2. Later, they are integrated by groups of autonomous communities that form specific geographic zones , this is NUTS 1. Finally, the geographical zones are integrated at the national level, this is NUTS 0.

The land prices and land rents for a given year are collected in December of the reference year of the data. This is done by the autonomous communities which send them to the national statistical unit in the first semester of the year following the reference year of the data.

In Spain, the economic sectors covered by land prices and land rents are (NACE- 2009):

01 Agriculture, livestock, hunting and related services

0111, 0112, 0113, 0114, 0115, 0116, 0119, 0121, 0122, 0123, 0124, 0125, 0126, 0128, 0129 and 0130.

In Spain, the economic sectors covered by land prices and land rents are (NACE- 2009):

01 Agriculture, livestock, hunting and related services

0111, 0112, 0113, 0114, 0115, 0116, 0119, 0121, 0122, 0123, 0124, 0125, 0126, 0128, 0129 and 0130.

In practice, this means: the actual price agreed upon by the agents participating in each transaction.

Land rents price is defined as the payment that a farmer makes to an owner of Land for the use of it.

Not applicable.

Not applicable.

Not relevant.

Not relevant.

The types of crops and permanent grassland are: cereal, rice, dried pulses, root crops, industrial crops, green fodder from arable land, flowers and ornamental plants, seeds, other field products (non-irrigable / irrigable), irrigated fresh vegetables, irrigated crops under glass, rice, irrigable citrus fruits, fruit trees from temperate climates (non-irrigable / irrigable), nuts (irrigable / non-irrigable), fruit trees from subtropical climates (non-irrigable / irrigable), vineyard (for table use / for wine use) (non-irrigable / irrigable), olive (for table use / for oil use ) (non-irrigable / irrigable), permanent grassland (non-irrigable / irrigable). These categories (from the Farm Structure Survey 2016) are compatible, both in definition and in aggregation with those required by the harmonized methodology proposed by the EUROSTAT.

The classes of crops and permanent grassland are: cereal, rice, dried pulses, root crops, industrial crops, green fodder from arable land, flowers and ornamental plants, seeds, other field products (non-irrigable / irrigable), non-irrigable vineyard, non-irrigable olive tree, and permanent grassland. These categories (from the Farm Structure Survey 2016) are compatible both in definition and aggregation with those required by the harmonized methodology proposed by the EUROSTAT.

The sources of information used by these entities can be: property registers, agents from the real estate agencies at the regional level, county agricultural services, agricultural chambers, agrarian unions, banks or savings banks, direct information from farmers, farm brokers and administrative data, local representations of the Ministry of Agriculture, agricultural advisory services; depending on the availability of information in each Autonomous Community and its provinces.

These questionnaires are treated statistically by the Autonomous Communities and sent to the General Subdirectorate of Statistics of the Ministry that is responsible for the calculation of the rents and indices, for the classes and geographical disaggregations already referred.

The sources of information used by these entities can be: property registers, agents from the real estate agencies at the regional level, county agricultural services, agricultural chambers, agrarian unions, banks or savings banks, direct information from farmers, farm brokers and administrative data, local representations of the Ministry of Agriculture, agricultural advisory services; depending on the availability of information in each Autonomous Community and its provinces.

These questionnaires are treated statistically by the Autonomous Communities and sent to the General Subdirectorate of Statistics of the Ministry that is responsible for the calculation of the rents and indices, for the classes and geographical disaggregations already referred.

The main variable to be calculated is the weighted average price of the land occupied by each crop and permanent grassland, expressed in euro / hectare, for the reference period (calendar year).

The fundamental variable object of calculation is the weighted average rent of types of the crops and permanent grassland, expressed in euro / hectare, for the reference period (calendar year).

There is no threshold regarding the area of the different types of crops. All those that belong in the utilized agricultural area and appear in the Farm Structure Survey (2016) are included in the survey.

There is no threshold regarding the area of the different types of crops. All those that belong in the utilized agricultural area that appear in the Farm Structure Survey (2016) are included in the survey.

Crops that amount to less than 5% of the utilized agricultural area are not included in the survey.

The National territory with exclusion: Ceuta and Mellla autonomous cities.

For each type of crop and permanent grassland, provinces are selected according to the following criteria: they are ordered from highest to lowest by occupied area, selecting those that together represent 80% of the total area for each type. In addition, those provinces considered of special interest by the Autonomous Communities are included.

The National territory with exception: Ceuta and Melilla.

Types of land that are the most significant according to the information provided by surveys carried out by the Autonomous Communities, and represent at least 80% of the leased area in each province.

Since 1983 to 2019.

Since 1998 to 2019.

Since 2016 to 2019.

Since 2016 to 2019.

Not applicable

This is a statistical operation whose execution is mandatory because it is included in the operations of the "National Statistical Plan".

This is a statistical operation whose execution is mandatory because it is included in the operations of the "National Statistical Plan".

This survey was especially important as a result of the entry into force of the "Law of Rural Rents" approved on November 26, 2003.

All personnel that participate in the various tasks of this investigation are responsible for upkeeping the confidentiality of the obtained data.

Necessary logical, physical and administrative measures are adopted so that the protection of confidential data is effective, since the data collection until its publication and storage.

In the survey questionnaires a legal clause is included to inform of the ways the collected data are protected.

Once the stages of collecting and treating the information are finished, the physical questionnaires that allow direct identification are kept during the legally established period in a safe place. After the period is over, they are destroyed.

Upon publication of the tables of results, the information detail is analyzed to prevent deduction of confidential data from the statistics units.

All personnel that participate in the various tasks of this investigation are responsible for upkeeping the confidentiality of the obtained data.

Necessary logical, physical and administrative measures are adopted so that the protection of confidential data is effective, since the data collection until its publication and storage.

In the survey questionnaires a legal clause is included to inform of the ways the collected data are protected.

Once the stages of collecting and treating the information are finished, the physical questionnaires that allow direct identification are kept during the legally established period in a safe place. After the period is over, they are destroyed.

Upon publication of the tables of results, the information detail is analyzed to prevent deduction of confidential data from the statistics units.

Yes

Yes

Not applicable.

Not applicable.

Nine months

Twelve months

The data from the year "n" (base 2016) are released in September of the year "n+1"

The data from the year "n" (base 2016) are released in December of the year "n+1"

Comparability of results between the various Autonomous Communities is assured by the existence of a common methodology, design and process of data collection, refinement, edition and aggregation for all the geographic area.

Comparability of results between the various Autonomous Communities is assured by the existence of a common methodology, design and process of data collection, refinement, edition and aggregation for all the geographic area.

The data delivered to EUROSTAT 2016 through 2019 (base 2016) are comparable over time.

The data delivered to EUROSTAT 2016 through 2019 (base 2016) are comparable over time.

The statistical data can be collected by means (depending on the Autonomous Communities system) of:

1. Direct observation of land prices.

2. Statistical data collection via a network of experts, "experts estimates".

3. Use of administrative data.

The statistical data can be collected by means (depending on the Autonomous Commmunities system) of:

1. Direct observation of land rents.

2. Statistical data collection via a network of experts "experts estimates".

3. Use of administrative data.

Since 1983.

Since 1998.

"Ad hoc" questionnaire

"Ad hoc" questionnaire

By calculating averages and removing outliers that are suspected of refering to non-agrarian usage.

By calculating averages and removing outliers that are suspected of refering to non-agrarian usage.

The aggregations of functional average prices, both by crop type and geographical, are calculated by weighting the elementary prices by the area allocated in the base. The calculated weights remain fixed throughout the period of validity of the base.

The average price of group "k" is mathematically expressed as follows:

where:

N = number of crop classes that make up group "k"

W_i = weighting per unit of increase of the area of crop "i" in group "k"

PM_i = average price per hectare of crop "i"

This formula is applied in each of the geographical levels where average prices are calculated, i.e. Autonomous Communities and country.

To calculate the average price of a class in a province, the representativeness of each class in lower geographical levels must be taken into account:

1. Selection of agricultural districts: the reference territorial unit is the agricultural district, and in each province those whose occupied surface amounts to at least 80% of the regional area of the specific class, after being sorted from lower to higher, are selected. However, and according to criteria set by Autonomous Communities, agricultural districts that do not fulfill the previous requirement may be included if they are of special interest.

2. Selection of municipalities-sites: elementary units subject to surveys have been established within the agricultural districts, i.e. municipalities or sites. A site is defined as  a geographical area that is homogeneous from the land price standpoint. This criteria is likewise applied for the selection.

Weightings

The weighting of a crop "i" for the calculation of the price is obtained as a quotient between the average area occupied by said crop during the reference period and the effective Utilized Agricultural Area (UAA): 

W_i = Effective area of ​​the crop "i" / Effective UAA

The weights remain fixed throughout the period of validity of the base change made.

The same crop may have different weights in the different geographical groupings, according to the superficial importance in each of these sets.

The functional aggregation of rents, both geographically and by crop types, is carried out by weighting the elementary rents by the assigned area in the base. These basic rents are those of each type of crop in the different provinces and are expressed in euros per hectare. The calculated weights remain fixed throughout the validity period of the base.

The average rent of group "k" is mathematically expressed as follows:

where:

N = number of crop classes that make up group "k"

W_i = weighting per unit of increase of the area of crop "i" in group "k"

PM_i = average price per hectare of crop "i"

This formula is applied in each of the geographical levels where average prices are calculated, i.e. Autonomous Communities and country.

To calculate the average price of a class in a province, the representativeness of each class in lower geographical levels must be taken into account:

1. Selection of agricultural districts: the reference territorial unit is the agricultural district, and in each province those whose occupied surface amounts to at least 80% of the regional area of the specific class, after being sorted from lower to higher, are selected. However, and according to criteria set by Autonomous Communities, agricultural districts that do not fulfill the previous requirement may be included if they are of special interest.

2. Selection of municipalities-sites: elementary units subject to surveys have been established within the agricultural districts, i.e. municipalities or sites. A site is defined as a geographical area that is homogeneous from the land price standpoint. This criteria is likewise applied for the selection.

Weightings

The weighting of a crop "i" for the calculation of the rent is obtained as a quotient between the surface leased in the geographical reference group "k" occupied by said crop and the total leased area of ​​the crop:

W_i = Leased surface of the crop "i" / Effective UAA

The weights remain fixed throughout the period of validity of the base change made.

The same crop may have different weights in the different geographical groupings, according to the superficial importance in each of these sets.

Formula used to calculate prices

The general average prices in the year "T", from geographical or functional groups (both current and constant prices), are calculated with the following formula:

where:

N = number of geographical groupings or crop classes-uses that make up the national total.

W_i = superficial weighting, as much as one, of the geographical grouping or classes of crops-uses that make up the national total.

= average price in year "T" of the referred geographic group or type of crop-use "i".

The Statistical Units of the Autonomous Communities are responsible for collecting the prices of the representative classes in the selected municipalities-sites.

Calculation of indices, variation rates and effects

The formula used in the base 2016 to calculate the indices is that of Laspeyres, the same as in the previous bases, and the same as that used in most of the countries that produce land price indexes.

Using this formula we calculate the weighted arithmetic means of the elementary indices. The weights used remain fixed during the period of validity of the new base.

The general index corresponding to the year "T" is mathematically expressed as follows:

where:

N = number of crop types or usage

= average area of the crop "i" in the period of 2016

= average price in the year "T" for crop "i"

= average price in the base period of 2016 for crop "i"

= general index of land prices in the year "T"

= general average price in the year "T" with the quantities of the base period (2016)

= general average price in the base period (2016)

The percentual variation rates of a given crop class or group in the year "T" over the previous year (annual rate) are calculated with the following formula:

The effect of the variation of the prices of a crop type in the general index variation is the part of the index variation corresponding to said type of crop. Thus, the addition of effects is equal to the general index variation.

The formula used for the calculation of the effect is the following one:

where:

= average price of the crop class "i" in the year "T"

= average price of the crop class "i" in the year "T-1"

= general average price in the year "T-1"

= surface weighting per unit of crop "i"

Formula used to calculate the agricultural land rent

The general average prices in the year "T", from geographical or functional groups (both current and constant prices), are calculated with the following formula:

where:

N = number of geographical groupings or crop classes-uses that make up the national total.

W_i = superficial weighting, as much as one, of the geographical grouping or classes of crops-uses that make up the national total.

= average price in year "T" of the referred geographic group or type of crop-use "i".

The Statistical Units of the Autonomous Communities are responsible for collecting the prices of the representative classes in the selected municipalities-sites.

Calculation of indices, variation rates and effects

The formula used in the base 2016 to calculate the indices is that of Laspeyres, the same as in the previous bases, and the same as that used in most of the countries that produce land price indexes.

Using this formula we calculate the weighted arithmetic means of the elementary indices. The weights used remain fixed during the period of validity of the new base.

The general index corresponding to the year "T" is mathematically expressed as follows:

where:

N = number of crop types or usage

= average rent of the crop "i" in the period of 2016

= average rent in the year "T" for crop "i"

= average rent in the base period of 2016 for crop "i"

= general index of land rents in the year "T"

= general average rent in the year "T" with the quantities of the base period (2016)

= general average rent in the base period (2016)

The percentual variation rates of a given crop class or group in the year "T" over the previous year (annual rate) are calculated with the following formula:

The effect of the variation of the rent of a crop type in the general index variation is the part of the index variation corresponding to said type of crop. Thus, the addition of effects is equal to the general index variation.

The formula used for the calculation of the effect is the following one:

where:

= average rent of the crop class "i" in the year "T"

= average rent of the crop class "i" in the year "T-1"

= general average rent in the year "T-1"

= surface weighting per unit of crop "i"

Not applicable.

Not applicable.