The price of agricultural land in Estonia has experienced a notable decline in 2025, marking a significant shift after a prolonged period of growth over the past 15 years. According to recent data from the Land Board, the average price has dropped by 2.1 percent to 6294 euros per hectare. This decrease is attributed to various factors, including ongoing challenges faced by crop growers, troubles within the dairy industry, as well as increasing interest rates that have cooled investor interest in agricultural assets.

Previously, between 2020 and 2023, the value of arable land surged nearly 80 percent, reflecting a booming agricultural sector and heightened demand for land. However, the years 2023 to 2025 have seen this momentum stall, with prices stabilizing in a tight range of 6294 to 6430 euros per hectare. Swedbank's agricultural sector leader, Brit Padjus, noted that the difficulties in the crop growing industry over the last three years have played a significant role in this downturn.

Looking ahead, the final yield figures for 2025 remain uncertain, which adds to the unpredictability of the agricultural sector. This downturn in land prices could have broader implications for the agricultural economy in Estonia, as lower land values may affect farmers’ investments and future planning. As challenges persist in various sectors, stakeholders will need to monitor these trends closely to navigate the evolving landscape of agricultural economics.