The Diversity of Land Markets and Regulations in Europe, and (some of) its Causes

Swinnen, Johan; Herck, Kristine Van; Vranken, Liesbet

doi:10.1080/00220388.2015.1060318

Cited by 29 publications

(22 citation statements)

References 43 publications

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“…Land rental is popular as it provides tenants with additional production flexibilities and does not tie up capital. It also allows tenants to avoid the transactions costs associated with land purchase (Swinnen et al ., ). On the flipside, land purchase is a store of wealth and a form of collateral and has advantages in providing greater security and promotes long‐term farm investment decisions.…”

Section: What Can We Currently Say About the Land Rental Market?mentioning

confidence: 97%

“…In addition to farm subsidies, other government policies can influence land rental prices. In France, the Societés pour l'Aménagement Foncier et l'Etablissement Rural (SAFER) places downward pressure on land rental prices and has the power to set a local minimum and maximum price bracket within which the tenant and the owner can agree a contract price (Swinnen et al., ). By contrast, in the Netherlands, the recent introduction of a phosphate trading scheme may place upward pressure on land rental prices.…”

Section: Land Rental Prices Datamentioning

confidence: 99%

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The Agricultural Land Market in the EU and the Case for Better Data Provision

2019

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Summary Participants in agricultural land markets require comprehensive statistics in order to make informed decisions in relation to agricultural land and the associated production. The publication of such data supports land mobility, the competitiveness and generational renewal of the sector. This article describes the functioning of agricultural land markets in EU Member States and the associated data infrastructure. We identify a scarcity of information regarding the volume of land sales transactions but significant recent improvements in the reporting of comparable statistics on agricultural land sales prices. Wide disparities between Member States both in terms of their agricultural land sales and agricultural land rental markets are documented. There remain significant data gaps in terms of land rental prices in EU Member States. Further EU‐wide research should be carried out in relation to land rental price indices with adjustments for the underlying land characteristics. The resulting price indices should provide a better indication of the competitiveness of land markets in EU regions. Finally, the analysis identifies recent improvements in measuring the extent of land fragmentation in the EU but finds that this analysis is confined to a minority of Member States.

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Section: What Can We Currently Say About the Land Rental Market?mentioning

confidence: 97%

Section: Land Rental Prices Datamentioning

confidence: 99%

The Agricultural Land Market in the EU and the Case for Better Data Provision

2019

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“…Land ownership may be prohibited for specific entities, there may exist restrictions regarding the size of the plot exchanged, or the government may impose some price regulations. Swinnen et al, 2016, provided an analysis of this diversity in Europe. For example, in Greece, foreigners need special authorization to purchase land in the border area.…”

Section: Limits To the Use Of The Informational Content Of Land Pricementioning

confidence: 99%

The Informational Content of Land Price and its Relevance for Environmental Issues

Latruffe

2017

IRERE

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As the support of human and natural activities, land is a resource of major interest both for environmental and socioeconomic issues. Research aimed at improving land management and conservation has long recognized the need to integrate both issues, but a consensual and consistent framework is still lacking. We argue that land price could be one of the possible links here, as a consistent proxy for some of the multiple dimensions of values that people put on land resources. We present the elementary economic theory about land price, namely the present value model, and we review the abundant empirical literature using this classical theory to study the informational content of land price. We then propose a typology of this literature, highlighting its strengths and weaknesses, in order to guide future environmental research which aim at drawing out some socioeconomically oriented policy recommendations.

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“…Remarkably, it is mainly the new EU Member States, which carry the legacy of weaker land market institutions from their socialist past, that opt for particularly strong regulations (cf. Swinnen, van Herck, and Vranken 2016). For example, new land market regulations aiming to restrict the purchase of agricultural land by foreigners and nonfarmers was released in Slovakia (Lazíková and Bandlerová 2015).…”

Section: Introductionmentioning

confidence: 99%

Land price diffusion across borders – the case of Germany

2019

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Land market regulations are often justified by the assumption that activities of foreign and nonagricultural investors drive up prices in domestic land markets. However, empirical knowledge about the dynamics of agricultural land prices across borders is sparse. Using the German reunification as a natural experiment, we study the effect of the former inner German border on the dynamics of agricultural land prices in East and West Germany. We apply a land price diffusion model with an error correction specification to analyse spatial agricultural land markets. A novel feature of our model is its ability to distinguish price diffusion within states and across state borders. We provide evidence for a persistent border effect given that the fraction of spatially integrated counties is larger within states than across the former border. Moreover, we observe non-significant error correction terms for many counties along the former border. From a policy perspective, it is striking to realize that even 25 years after German reunification, pronounced land price differences persist. It is quite likely that price diffusion through existing borders within the EU would take even more time given language barriers, different institutional frameworks, and information asymmetries between domestic and foreign market participants.

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The Diversity of Land Markets and Regulations in Europe, and (some of) its Causes

Cited by 29 publications

References 43 publications

The Agricultural Land Market in the EU and the Case for Better Data Provision

The Agricultural Land Market in the EU and the Case for Better Data Provision

The Informational Content of Land Price and its Relevance for Environmental Issues

Land price diffusion across borders – the case of Germany

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