If you wonder: How much does one hectare (10 000 square metres, 2.47 acres, once the Trafalgar Square) of Cognac vineyard cost, you’ll find the answer in this article… and also the general development of agricultural soil prices and business in France.
The business of buying and selling land in the Cognac region declined by 31% in 2009 – not that surprising if one looks at the international Cognac market.
In 2009 there were 640 transactions of soil and the price of the vineyards went up by 5,3%. Means: Less transactions but still, the price per hectare goes up. In the Grande Champagne, the 1st cru (area) of the Cognac region, a hectare costs about 35 000 euros.
Just to put it in context: In France, the average price of an agricultural hectare is 5.090 euros (and the average price for a wineyard-hectare is at 50 000 euros, without counting the Champagne area) . In general, the price for a hectare of agricultural soil declined by 1,6% (+ 5,3% in the Cognac region). The transactions in France declined by 4%.
Now let’s have a look at the French vineyards, in general (not only the Cognac vineyards but all the other as well ): 14% less transactions and prices went down by 19%! In total, there were 14 000 hectares sold and bought, which equals 560 million euros.
The three first markets (French wine growing areas):
- Languedoc-Roussillon (4230 ha)
- Rhône-Provence (2580 ha)
- Bordeaux-Aquitaine (2460 ha)
The prices (per hectare) in the wine growing area
- 113 800 € (+3,9%) Bourgogne-Beaujolais-Jura-Savoie,
- 66 900 € (+2%) Bordeaux-Aquitaine
- 35 000 € for a hectare in the Grande Champagne region (Cognac)
- 12 600 € (+12,5%) Corse
- 11 200 € (+3,7%) Languedoc-Roussillon.
- and the king of soil prices: The Champagne area at 850 200 € (+2,5%).
The Safer (La Fédération nationale des Safer) explains that the situation is heavily linked to the economic downturn – and in particular linked to a dangerous free-fall of agricultural revenues: 50% less. This again is strongly linked to lower prices for corn and other commodities.
Still, don’t forget that there is a complex and old license law regarding planting new vineyards etc. Please see below for article “European Union guideline VS. the Law of King Louis XV”.
Source: La Fédération nationale des Safer
Pic: Athanasius license