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- Agricultural land prices have risen in recent years, and today one hectare in Slavonia costs at least five thousand euros
- The quality of Croatian land is average and much worse than that in Hungary, Vojvodina, Romania, and incomparable to Ukrainian land
- Since Croatia’s entry into the EU, 62,676 hectares of agricultural land have been lost
- There is no reliable data on the area or quality of agricultural land
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For years, we have been reading and hearing in the media that we have not utilized all the land resources in Croatia for agricultural development. On the other hand, Lider itself has published stories where the topic was agricultural land, and we have noted that for at least the last six or seven years, farmers have struggled to acquire agricultural plots to develop their agricultural business. As soon as a plot, whether in state or private ownership, is for sale or offered for rent, a buyer or tenant is quickly found, if not immediately.
On the other hand, agricultural land prices have risen in recent years, and today one hectare in Slavonia costs at least five thousand euros, often more, while the highest quality land in eastern Croatia can reach a price of ten thousand euros per hectare. As we move westward, the price decreases, but even in Virovitica, Varaždin, Čakovec, and Zagorje, there is no shortage of demand for agricultural land.
Despite this, there is much uncultivated land, especially in Banija and Kordun, and it is said that there is some in Lika (although we hear that in Lika there are examples, as everywhere, where subsidies are received for land that is neither cultivated nor grazed by livestock). A lot of land has overgrown with shrubs, or since there is no livestock farming in parts of Velebit, we have gained forests, and it is clear that money should be invested to return that land to agricultural purposes. A good example is the story from Banija that we recently published in Lider about the investment of two entrepreneurs Đuro Tadić and Zvonko Belošević in a hazelnut plantation, who told us that there is still uncultivated land in Banija.
Just as we were preparing the story about Belošević, Tadić, and other entrepreneurs who invested in agriculture, Robert Jurišić, founder and director of S-GRAIN BI, a company that mediates in the buying and selling of soybean produced in Croatia and Hungary, as well as wheat and corn, presented an interesting thesis on LinkedIn that the utilization of agricultural land in Croatia is almost complete. He meant only the land that is cultivable, i.e., in which it is profitable to invest. We cannot immediately dismiss this thesis, as we noted, and during the preparations for the topic on agricultural land, our interlocutors often mentioned that it is increasingly difficult to find any plot because the interest in cultivating land and livestock farming is high, primarily due to generous subsidies.
Production is not profitable everywhere
We spoke with Jurišić about his published post, and he stands by it, but he is open to discussion. This former president of the Management Board of Agrokor Trgovina (2015 – 2020) and member of the Management Board of Pik Vinkovci (2018 – 2020) states in his post that there is a widespread thesis in our country that there is a lot of uncultivated land and wants to debunk that myth.
He continues: ‘In Croatia, almost all land that makes economic sense to cultivate is being cultivated. Yes, there is land that is not cultivated, but it is not cultivated because pedologically and/or climatologically, production on that land is not profitable. What does that mean? It means that this land, due to its qualitative composition (clay soil, acidified soil, etc.), or due to climatic conditions (too much/too little precipitation, insufficient insolation, frequent frosts, etc.) cannot provide the producer with the same yield as some high-quality soils. And that is the whole philosophy.
When at the same level of investment on two qualitatively different plots you have a difference in yield of 30 or 40 percent, then that is the difference between sustainable and unsustainable business. Generally, the quality of Croatian land is average (the only noteworthy land is in the far east, along the Danube), much worse than the quality of land in Hungary, Vojvodina, Romania, and incomparable to the quality of land in Ukraine.
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Moreover, there are soils that meet quality standards but require significant investments to bring that area to type (convert it into agricultural land), making it an unprofitable investment for producers. This is a question that should be addressed by the state/local government units. There is also the issue of the functioning of Croatian waters (or more precisely, Croatian drainage) and irrigation, but that is a topic in itself. We can only state that Croatia is one of the few countries in Europe that experiences both floods and droughts in the same year. The summary is that in Croatia there is no significant quality land that is not being cultivated. The other question is whether we can optimally utilize the approximately 1.5 million hectares of utilized agricultural land,’ Jurišić concludes.
Unreliable data
We asked experts what they think about Jurišić’s thesis. Zvjezdana Blažić from the consulting firm Smarter does not support this thesis due to, she says, numerous data that we can obtain from various sources. Although Jurišić presents the figure of 1.5 million hectares (DZS) of utilized agricultural land, Blažić warns that neither this data nor that on soil quality is actually completely accurate. From DZS data, she points out, it is evident that the usability of land is decreasing.
For example, in 2013, Croatia had 1,568,881 hectares of utilized agricultural land, and by 2020, that number had fallen to 1,506,205 hectares. Thus, since Croatia’s entry into the EU, 62,676 hectares of agricultural land have been lost! This data alone shows us that we should have more unused land than Jurišić assumes, although, to be fair, if the reduction of agricultural hectares continues, we will indeed reach a situation where utilization is complete.
But even this DZS data, let us recall the words of Zvjezdana Blažić, is not very reliable. She also reminds us of other sources from as far back as 1989 when, according to the Agricultural Census, Croatia had 3.2 million hectares of agricultural land.
– Part of that area has been urbanized, part has overgrown and become forest, and part of that land consists of marginal soils on which it is significantly more difficult and less profitable to grow agricultural crops, but with changes in agricultural crops, and today the arable ones prevail, it is possible to use some of the agricultural land that was previously agricultural. However, the question is the profitability of bringing overgrown land to use and cleaning those areas. With higher value-added crops and a well-designed process, along with the use of EU funds, that is also possible,’ says Blažić.
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However, that we cannot be sure about the data is confirmed by the fact, Blažić continues, that this is not only a problem in our country but also in most European countries, and it has been a multi-decade issue, as far back as 1985, when the leaders of the then EEC decided to launch CORINE (COoRdination of INformation on the Environment), a program that at that stage was an experimental project aimed at achieving consistency in data on the state of the environment and natural resources in member countries. For example, according to data from the Environmental Protection Agency, Corina Land Cover in Croatia for the period 1980 – 2006, there were still 2,767,000 hectares of potentially cultivable agricultural land.
– This means that in relation to the DZS data, there is a difference of 1.2 million hectares of potentially cultivable land that is not being used,’ notes Blažić.
Money for permanent monitoring of soil quality
To conduct a proper analysis and determine whether the utilization of agricultural land is complete or partial, it is necessary to invest money. The Ministry of Agriculture has allocated funds for the digitalization of agriculture in the NPOO, so it would be good, adds Blažić, to finally create digital databases and resolve data on the use of agricultural land, as well as those on its quality.
The Croatian Agency for Agriculture and Food (HAPIH) is responsible for analyzing and monitoring soil quality, and they tell us that they currently do not have aggregated data on soil quality that would allow us to analyze which soils are of satisfactory quality and which need to be improved for better yields. This is because there is no continuous monitoring of soil quality. However, Hrvoje Hefer, head of HAPIH’s Soil Center and assistant director of that institution, confirms Blažić’s words, stating that 13 million kuna has been secured from the NPOO for the implementation of permanent monitoring of the state of agricultural land throughout Croatia.
– The goal of the program in the future is to enable the identification of crisis areas where soils are exposed to threats defined by the European Commission document ‘Thematic Strategy for Soil Protection’. In addition to identifying so-called crisis areas and the threats to which the soils in them are exposed, permanent monitoring of the state of agricultural land will also enable the prediction of negative processes in the soil, determining damage and pollution, and preventing or mitigating them. The data collected in this way will provide a more effective soil protection policy as well as a policy of sustainable agriculture and rural development. The program will register and monitor natural factors and anthropogenic impacts on the soil and ultimately objectively evaluate the effectiveness of soil protection measures and applied agrotechnics,’ says Hefer.
The results obtained will be a source of data on the state of soils within the Information System of Agricultural Land Data (ISAPZ). They will be, Hefer explains, a key government instrument for implementing sustainable soil development practices and optimal agricultural systems, as well as monitoring legislation and developing strategies and policies for soil protection at the national level. Thanks to this, the data will be consolidated and can be exchanged by public legal entities, and access to this data and information will also be enabled for the public.
Some analyses do exist
Although there is no continuous monitoring of soil quality in Croatia, Hefer notes that some projects in this regard have been carried out. For example, since 2019, soil samples have been taken with corresponding GPS coordinates, and based on georeferenced data, HAPIH’s Soil Center creates predictive maps of soil chemical properties. The results obtained from monitoring fertility show that over 50 percent of analyzed soil samples have acidic reactions on which soil improvement measures need to be implemented. The results also show that in 55.4 percent of soils, the humus content is less than two percent, which further warns and requires, he emphasizes, soil improvement measures. He notes that the biggest problem is soil humus content, and the most important strategic agrotechnical measure is organic fertilization and management of organic matter.
– In Croatia, Measure 10.1.17 is currently being implemented as part of rural development measures, which encourages the use of organic fertilizers on arable land. The data obtained from monitoring the state of agricultural land, i.e., soil fertility for 2019, 2020, and 2021 do not deviate, which shows the high accuracy of the collected data and highlights the extremely important centralized data collection in HAPIH’s Soil Center as a starting point,’ says Hefer.
He adds that soil analysis is a necessary prerequisite for soil improvement; it provides insight into the state, or the so-called ‘health’ of the soil, saves money, and increases yields. At the same time, by optimizing fertilization, we protect the environment and produce safe and healthy food. At the same time, soil analysis is a necessary prerequisite for determining how much fertile land we actually have and how much of it is utilized.
Although Jurišić speaks of the economic logic of investment profitability, it is clear that the story is deeper and that it is necessary, above all, to consolidate and specify data on the number of hectares of agricultural land in Croatia, which we do not have, as well as data on soil quality. Professor at the Faculty of Agriculture in Osijek, Dr. Vladimir Zebec, says that he can partially agree with Jurišić, but only because his only criterion is the economic component. However, Zebec also emphasizes that ‘land and soil resource management has a much broader social and socioeconomic significance, which is reflected, among other things, in the preservation of rural areas.’
– Furthermore, through a system of direct and indirect support, the legislator should create a framework in which it will compensate for the yield difference to agricultural producers operating in areas and soils with reduced fertility potential, but that is a broader topic. An assessment of how much money needs to be invested to improve soil quality can only be made once the limiting factors are diagnosed, such as acidity, compaction, stoniness, lack of organic matter, nutrients, etc., because that also affects the cost of soil improvement measures,’ concludes Zebec.
When we have all the aforementioned data, we will be able to calculate how much agricultural land is utilized in Croatia.
