Browsing by Subject "Farmland price"

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Analyse bedeutender Einflussfaktoren auf die Bodenrichtwerte für landwirtschaftliche Flächen in unterschiedlichen Regionen Deutschlands im Kontext bodenmarktpolitischer Interventionen
(2018) Lehn, Friederike; Bahrs, Enno
Agricultural land is a special good. It is immobile, non-extendable and, due to its multi-dimensional services essential for human well-being. Agricultural land is also the most important production factor for farms. In Germany, farmland prices have significantly increased over the last decade. Overall, the price developement have led to discussions as to whether stronger interventions in farmland markets are necessary or not. Among others, limiting further farmland price increases is pursued. However, such interventions should be based on previous analyses of the farmland market. Hence, the overall objective of this doctoral thesis is to improve the understanding of the price formation mechanisms of German farmland prices. Chapter 2 presents three methods of determining the value of farmland (standard farmland value, market value and capitalized ground rent) and discusses their applicability as a reference value for agricultural policy in order to identify prices beyond the (real) value. Chapter 3 analyzes the farmland price determinants in Germany and Italy by the means of a spatial econometric model. The model explicitly takes spatial dependencies among neighbouring areas into account, not only in form of spatially lagged farmland prices (spatial lag model) but also in form of spatially lagged explanatory variables (spatial Durbin model). Results show that both agricultural and non-agricultural factors are important for explaining farmland prices in both countries. Differences seem to be stronger within the member states than between the countries. Chapter 4 estimates a multiple linear regression model. Based on municipal level standard farmland values for North Rhine-Westphalia in 2010, small-scale factors influencing farmland prices are identified. Slope of farmland, population density and livestock density are the most important price determinants. Chapter 5 estimates a general spatial model of standard farmland values for arable land in the federal state North Rhine-Westphalia using municipal level data in 2013. Urban sprawl and livestock production are the main price drivers. In this context, a set of German legal regulations, mainly from tax law, is presented, that additionally reinforce these price-increasing impacts. Hence, proposed farmland market interventions aiming to limit farmland price increases are thwarted by regulations of other policy areas. It is recommended to adjust these existing regulations to the objective of intervention instead of creating new regulations.Chapter 6 analyzes the standard farmland values for arable land in North Rhine-Westphalia from 2010 to 2013 by the means of a quantile regression. Heterogeneous relationships across the conditional distribution of standard farmland values are found for several covariates. Non-agricultural factors and livestock density are more pronounced at the upper tail of the conditional distribution and thus, they are price drivers particularly for conditional higher farmland prices. Chapter 7 analyzes the impact of nature conservation on standard farmland values in Rhineland-Palatinate and Thuringia by including the shares of different protected areas in a spatiotemporal regression model. Results indicate that nature conservation can influence standard farmland values, but the magnitude and direction of the effect depend on the type of protected area, the type of land use and by region. Thus, it is argued that there is not only land-use competition, but also compatibility between agricultural production and nature conservation. Chapter 8 summarizes the results of the chapters 2 to 7 and discusses them with regard to the overall research questions. The analysis of the three federal states shows that a variety of standard farmland value determinants exists and that the farmland markets of the federal states exhibit regional differences in the importance of agricultural and non-agricultural factors. The results of this doctoral thesis further reveal that the draft laws of stronger farmland market regulations so far are hardly able to lead to better market outcomes. Thus, it is recommended addressing the price-increasing factors directly, including also regulations outside the land law, to reduce the increase of farmland prices. Finally, further research needs are shown, which particularly include the identification of options for action to successfully protect agricultural land.