IDEAS home Printed from https://ideas.repec.org/a/ags/aolpei/157586.html
   My bibliography  Save this article

Development of Market Prices of Agricultural Land within the Conditions of the EU

Author

Listed:
  • Pletichová, D.
  • Gebeltová, Z.

Abstract

Market prices of agricultural land in the world have increased significantly in recent years. Important factors in regard to this trend are not only the fact that land is a basic, irreplaceable resource for the production of food and natural resources of each country, but also the fact that it is generally perceived as a favorable holder of capital, not succumbing to the effects of inflation. Market prices of agricultural land and the rent level in individual EU member countries are affected by historical development, the size structure of agricultural businesses, legislation, regulation of the land market, natural conditions and the intensity of agricultural production (e.g. the Netherlands). Market prices of agricultural land in the Czech Republic are monitored by the Czech Statistical Office (CSO), Institute for Agricultural Economics and Information (IAEI) and Ministry of Agriculture (MoA), but output of the data base is not comparable within a time series 1993-2012, as institutions work with differing methodology. On the basis of the description of prices of agricultural land and regression analysis, the hypothesis that the market price of agricultural land for agricultural use in the Czech Republic is affected primarily by its quality was not confirmed. The official (administrative) price is only an orientational and subsidiary tool for the determination of the market price. The development of the agricultural land market in the Czech Republic was affected by the privatization of land after 2000. According to an estimate (of the author), after the completion of privatization, and also in view of changes in tax policy, the prices of transacted land for agricultural use can decline within 3 years (2014) by up to 30%. It is probable that the demand will be focused on transactions with land for speculative and investment purposes, as, according to world trends, the average increase in value of investments in land in a time of economic crisis is higher (6-7% p.a.) as compared to investments in stock markets (1.8-2.2%). The article has been processed as part of VZ MSM 6046070906 “The economy of resources of Czech agriculture and their effective utilization within multifunctional agricultural-food systems”.

Suggested Citation

  • Pletichová, D. & Gebeltová, Z., 2013. "Development of Market Prices of Agricultural Land within the Conditions of the EU," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 5(3), pages 1-14, September.
    • Handle: RePEc:ags:aolpei:157586
    DOI: 10.22004/ag.econ.157586
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/157586/files/agris_on-line_2013_3_pletichova_gebeltova.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.157586?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hurrelmann, Annette, 2008. "Analysing agricultural land markets as organisations: An empirical study in Poland," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 338-349, July.
    2. Pavel Ciaian & d’Artis Kancs & Johan Swinnen, 2010. "EU Land Markets and the Common Agricultural Policy," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(3), pages 1-31.
    3. Lloyd, T A & Rayner, A J & Orme, C D, 1991. "Present-Value Models of Land Prices in England and Wales," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 18(2), pages 141-166.
    4. Shagaida, Natalya, 2007. "Agricultural land market in Russia and large corporate farms," 102nd Seminar, May 17-18, 2007, Moscow, Russia 10014, European Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jerzy Michalek & Pavel Ciaian & d’Artis Kancs, 2014. "Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the European Union," Land Economics, University of Wisconsin Press, vol. 90(2), pages 260-289.
    2. Élodie Letort & Chalachew Temesgen, 2014. "Influence of environmental policies on farmland prices in the Bretagne region of France," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 95(1), pages 77-109.
    3. Stefan Seifert & Christoph Kahle & Silke Hüttel, 2021. "Price Dispersion in Farmland Markets: What Is the Role of Asymmetric Information?," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1545-1568, August.
    4. David Maddison, 2009. "A Spatio‐temporal Model of Farmland Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 171-189, February.
    5. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    6. Van Herck, Kristine & Vranken, Liesbet, 2011. "Direct payments and rent extraction by land owners: Evidence form New Member States," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99583, European Association of Agricultural Economists.
    7. Van Herck, Kristine & Vranken, Liesbet, 2012. "Direct Payments and Land Rents: Evidence from New Member States," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126777, International Association of Agricultural Economists.
    8. repec:lic:licosd:35414 is not listed on IDEAS
    9. Alexander März & Nadja Klein & Thomas Kneib & Oliver Musshoff, 2016. "Analysing farmland rental rates using Bayesian geoadditive quantile regression," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(4), pages 663-698.
    10. Drescher, Klaus & Henderson, Jason R. & McNamara, Kevin T., 2001. "Farmland Price Determinants," 2001 Annual meeting, August 5-8, Chicago, IL 20685, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Qineti, Artan & Rajcaniova, Miroslava & Braha, Kushtrim & Ciaian, Pavel & Demaj, Jona, 2014. "When land markets 'do not work' and status-quo agrarian structures persist: A case study from rural Albania," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182976, European Association of Agricultural Economists.
    12. Brady, Mark V. & Hristov, Jordan & Sahrbacher, Christoph & Willhelmsson, Fredrik, 2015. "Passive farming in Europe: hindering agricultural development or preserving valuable landscape," 147th Seminar, October 7-8, 2015, Sofia, Bulgaria 212248, European Association of Agricultural Economists.
    13. repec:lic:licosd:29311 is not listed on IDEAS
    14. Pavel Ciaian & D'Artis Kancs & Johan Swinnen, 2014. "The Impact of the 2013 Reform of the Common Agricultural Policy on Land Capitalization in the European Union," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(4), pages 643-673.
    15. Pavel Ciaian & d'Artis Kancs & Maria Espinosa, 2018. "The Impact of the 2013 CAP Reform on the Decoupled Payments’ Capitalisation into Land Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(2), pages 306-337, June.
    16. Garrone, Maria & Emmers, Dorien & Olper, Alessandro & Swinnen, Johan, 2019. "Jobs and agricultural policy: Impact of the common agricultural policy on EU agricultural employment," Food Policy, Elsevier, vol. 87(C), pages 1-1.
    17. repec:lic:licosd:21508 is not listed on IDEAS
    18. Kai Ding & Filippo Rebessi, 2020. "Optimal Agricultural Policy: Small Gains?," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1907-1928, October.
    19. Czyżewski, Bazyli & Polcyn, Jan, 2016. "Application of perpetual rent model to valorisation of agricultural land," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 252638, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    20. Zhllima, Edvin & Rama, Klodjan & Imami, Drini, 2021. "Agriculture land markets in transition - The inherited challenge of the post-communist land reform in Albania," Land Use Policy, Elsevier, vol. 107(C).
    21. Sinziana Elena Butnaru, 2014. "The impact of liberalization on the romanian land market sales," International Conference on Competitiveness of Agro-food and Environmental Economy Proceedings, The Bucharest University of Economic Studies, vol. 3, pages 244-250.
    22. Di Corato, Luca & Zormpas, Dimitrios, 2017. "Should I farm or should I not?," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261110, European Association of Agricultural Economists.
    23. Hennig Solveigh & Breustedt Gunnar, 2018. "The Incidence of Agricultural Subsidies on Rental Rates for Grassland," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 238(2), pages 125-156, April.

    More about this item

    Keywords

    Agricultural and Food Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aolpei:157586. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/fevszcz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.