In Wallonia, a large proportion of the hectares of agricultural land are operated under farm leases. As with any lease, tenants of agricultural land and farm buildings must pay a “rent” to their landlord. The rent coefficients allow the amount of this rent to be adjusted each year.
How are they calculated ?
To take into account the differences and profitability between agricultural regions, the law provides for the establishment of coefficients for each region, revised annually. This coefficient is thus calculated by region and province based on an equal weighting between the consumer price index and the development of agricultural labor income per hectare.
How are they calculated ?
Following the increase in the consumer price index and labor income, we see that all coefficients are increasing for this year 2023. Generally, the consumer price index only increases by 2% per year. However, it increased by 6% from December 2020 to December 2021.
Regarding labor income, its evolution is explained by the good results obtained in 2021, but also by the disappearance of the year 2016 in the reference period in the numerator, while it is still present in the denominator. The year 2016 having been particularly difficult in agriculture in terms of income, dragged the averages down. However, by excluding this year from the period considered, the average income between 2017 and 2021 improves significantly.
The removal of 2016 from the index period therefore results in an increase in average income and therefore a change in the ratio used to construct the index.
Discover the farm coefficients for the year 2023
The rent coefficients for agricultural land are defined as follows :
- Ardenne agricultural region: Hainaut 3.36, Luxembourg 3.56, Namur 3.53
- The Hennuyère Campine: Hainaut 3.18
- The Condroz: Hainaut 3.79, Liège 3.89, Namur 3.79
- La Fagne : Hainaut 3.24, Namur 3.24
- La Famenne : Hainaut 3.18, Liège 3.52, Luxembourg 3.36, Namur 3.18
- The High Ardennes : Liège 4.14
- The Grassland Region: Liège 4.11, Luxembourg 4.11
- The Jurassic Region: Luxembourg 3.31
- The Silty Region: Walloon Brabant 3.69, Hainaut 3.69, Liège 3.79, Namur 3.90
- The Sablo-Limoneuse Region: Walloon Brabant 3.48, Hainaut 3.48
The rent coefficients for farm buildings are fixed as follows :
- The Ardennes: Hainaut 7.22, Luxembourg: 5.29, Namur 6.58
- The Hennuyère Campine: Hainaut 7.06
- The Condroz: Hainaut: 7.40, Liège: 9.26, Namur: 7.28
- La Fagne : Hainaut 7.70, Namur 7.67
- La Famenne : Hainaut 7.31, Liège 9.36, Luxembourg 5.70, Namur 6.66
- The High Ardennes : Liège 10.15
- The Grassland Region: Liège 9.87, Luxembourg 6.01
- The Jurassic Region: Luxembourg 5.02
- The Silty Region: Walloon Brabant 7.18, Hainaut 7.18, Liège 8.80, Namur 6.92
- The Sablo-Limoneuse Region: Walloon Brabant 6.89, Hainaut 7.01