One of the most essential foundations of the operation is the agricultural land, which is in ownership or rented. The land is purchased or on rent contracts, which are continuously renewed. The operating value is therefore continuously significantly increased. This value add on land is not included in FirstFarms’ asset statements on land.
There are no official statistics for purchase and sale of agricultural land in our operating areas, and there is no official evaluation of the land. It is therefore difficult to obtain fully documented information about land prices and the development in the land prices. Our assessment of market prices is based on knowledge of actual land transactions and official independent valuations. The valuation is influenced by several parameters, of which the most important are field size, quality and transaction size. The largest part of the land has been in our ownership in over 10 years.
FirstFarms always focuses on land improvements and compactation of the land in present areas and expansion in areas with potential good compactation and high-quality land close to present operation centres. The costs for this process is paid over the operation. FirstFarms has great focus on the average field size. There is positive operating economy in increasing the field size and compacted location of fields. At the same time, we are constantly working on registered ownership in land book. Only a marginal part of the land is not registered in land book.