IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v56y2010i12id130-2010-agricecon.html
   My bibliography  Save this article

The relations between the rent and price of agricultural land in the EU countries

Author

Listed:
  • František STŘELEČEK

    (Department Accounting and Finances, Faculty of Economics, University of South Bohemia, České Budějovice, Czech Republic)

  • Jana LOSOSOVÁ

    (Department Accounting and Finances, Faculty of Economics, University of South Bohemia, České Budějovice, Czech Republic)

  • Radek ZDENĚK

    (Department Accounting and Finances, Faculty of Economics, University of South Bohemia, České Budějovice, Czech Republic)

Abstract

The price of agricultural land and its value are of importance when forming the production potential of agricultural enterprises. The price of land marked an irregular development in the period 2006-2007 having increased in the majority of the EU states. The proportion of rent to the market price of land referred to as the capitalization rate kept varying within the range of 2-3%. The price of a site should, besides the land rent, also reflect the interest on the land rent received. The price of agricultural land with respect to the land rent manifests relatively important price inertia. This inertia in connection with a high growth rate of land rent results in the unrealistically high interest rate. Such situation is an evident advantage for land owners and is, on the contrary, a disadvantage for the tenants of the agricultural land. To make the interest rate realistic means especially stabilizing the land rent with low growth rates. These growth rates are different for different states. In general it can be maintained that the relative increase in land rent should not surpass 4%, exceptionally 6%.

Suggested Citation

  • František STŘELEČEK & Jana LOSOSOVÁ & Radek ZDENĚK, 2010. "The relations between the rent and price of agricultural land in the EU countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(12), pages 558-568.
    • Handle: RePEc:caa:jnlage:v:56:y:2010:i:12:id:130-2010-agricecon
    DOI: 10.17221/130/2010-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/130/2010-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/130/2010-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/130/2010-AGRICECON?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Patton, Myles & Kostov, Philip & McErlean, Seamus & Moss, Joan, 2008. "Assessing the influence of direct payments on the rental value of agricultural land," Food Policy, Elsevier, vol. 33(5), pages 397-405, October.
    2. E. Hamza & K. Miskó, 2007. "Characteristics of land market in Hungary at the time of the EU accession," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 53(4), pages 161-168.
    3. J.P. Boinon & J.C. Kroll & D. Lepicier & A. Leseigneur & J.B. Viallon, 2007. "Enforcement of the 2003 CAP reform in 5 countries of the West European Union: Consequences on land rent and land market," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 53(4), pages 173-183.
    4. Haixiao Huang & Gay Y. Miller & Bruce J. Sherrick & Miguel I. Gómez, 2006. "Factors Influencing Illinois Farmland Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 458-470.
    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. Feichtinger, Paul & Salhofer, Klaus, 2013. "A Spatial Analysis of Agricultural Land Prices in Bavaria," Working papers 160741, Factor Markets, Centre for European Policy Studies.
    2. Ivan Takáč & Jarmila Lazíková & Ľubica Rumanovská & Anna Bandlerová & Zuzana Lazíková, 2020. "The Factors Affecting Farmland Rental Prices in Slovakia," Land, MDPI, vol. 9(3), pages 1-18, March.
    3. Ritter, Matthias & Hüttel, Silke & Odening, Martin & Seifert, Stefan, 2020. "Revisiting the relationship between land price and parcel size in agriculture," Land Use Policy, Elsevier, vol. 97(C).
    4. 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.
    5. Schilling, Brian J. & Sullivan, Kevin P. & Duke, Joshua M., 2013. "Do Residual Development Options Increase Preserved Farmland Values?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-17.
    6. Ritter, Matthias & Huttel, Silke & Odening, Martin & Seifert, Stefan, 2019. "Revisiting The Relationship Between Land Price And Parcel Size," 2019 Conference (63rd), February 12-15, 2019, Melbourne, Australia 285062, Australian Agricultural and Resource Economics Society (AARES).
    7. repec:zbw:inwedp:582015 is not listed on IDEAS
    8. Curtiss, Jarmila & Jelínek, Ladislav & Hruška, Martin & Medonos, Tomáš & Vilhelm, Václav, 2013. "The Effect of Heterogeneous Buyers on Agricultural Land Prices: The Case of the Czech Land Market," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(2).
    9. 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.
    10. Baylis, Kathy & Paulson, Nicholas D. & Piras, Gianfranco, 2011. "Spatial Approaches to Panel Data in Agricultural Economics: A Climate Change Application," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(3), pages 325-338, August.
    11. repec:lic:licosd:35414 is not listed on IDEAS
    12. Latruffe , Laure & Piet, Laurent & Dupraz, Pierre & Le Mouël, Chantal, 2013. "Influence of Agricultural Support on Sale Prices of French Farmland: A comparison of different subsidies, accounting for the role of environmental and land regulations," Factor Markets Working Papers 163, Centre for European Policy Studies.
    13. Khalid Haniza, 2015. "Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 28(28), pages 113-128, June.
    14. Eigner, Amanda E. & Nuppenau, Ernst-August, 2019. "Applied spatial approach of modelling field size changes based on a consideration of farm and landscape interrelations," Agricultural Systems, Elsevier, vol. 176(C).
    15. repec:lic:licosd:29311 is not listed on IDEAS
    16. 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.
    17. repec:zbw:inwedp:652016 is not listed on IDEAS
    18. 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.
    19. Xinyue Yang & Martin Odening & Matthias Ritter, 2019. "The Spatial and Temporal Diffusion of Agricultural Land Prices," Land Economics, University of Wisconsin Press, vol. 95(1), pages 108-123.
    20. Choumert, Johanna & Phélinas, Pascale, 2014. "A Hedonic Analysis Of Agricultural Land Values In A Gm Soybean Area Of Argentina," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182750, European Association of Agricultural Economists.
    21. Hongkun Ma & Hao Zhu & Shuhan Ren & Rudi Liu & Cuixia Qiao, 2023. "The Impact of Government-Led Farmland Construction on Market-Oriented Farmland Transfer—Evidence from Shandong, China," IJERPH, MDPI, vol. 20(4), pages 1-12, February.
    22. Ciliberti, Stefano & Frascarelli, Angelo, 2018. "Does the basic payment efficiently enhance farm incomes? Evidences from Italy," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 271957, 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.
    24. Benoît A. Delbecq & Todd H. Kuethe & Allison M. Borchers, 2014. "Identifying the Extent of the Urban Fringe and Its Impact on Agricultural Land Values," Land Economics, University of Wisconsin Press, vol. 90(4), pages 587-600.

    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:caa:jnlage:v:56:y:2010:i:12:id:130-2010-agricecon. 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: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    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.