The Factors Affecting Farmland Rental Prices in Slovakia

Abstract

Agricultural land is a limited natural resource with increasing economic value. This study analyses land rental relationships in Slovakia, including legal rental regulations, and identifies the impact of certain factors, such as the European Union Common Agricultural Policy (CAP) payments, and geographical and economic factors on land rental prices. From the results of econometric models, it was found that certain CAP payments have an effect on rental prices, mainly the single area payment scheme (SAPS), payments for agri-environmental-climate schemes (AECS), and animal welfare, which were found to have positive effects. Other important factors found to influence rental prices are economic indicators (such as total revenue share of total costs, share of revenue from agricultural production in terms of total revenue, share of production costs as a percentage of total costs, wages, and number of employees) and geographical factors (such as region or partial production areas). However, the distance of the farm from the district city (LAU 1) and the share of farmland affected by natural constraints do not considerably affect rental prices in Slovakia. Land consolidation is a statistically significant factor according to the models; however, its impact is almost zero. Knowledge of these factors constitutes important know-how, not only for policy makers but also for the actors operating in the land rental market (e.g., landlords, tenants, experts on land valuation, and real estate agents).

Beyond Monetary Cost-Benefit Analyses: Combining Economic, Environmental and Social Analyses of Short Rotation Coppice Poplar Production in Slovakia

“…The economic analyses of annual crop production assume that the land management organization rents the fields. Therefore, the average rental price of 50.25 euros per hectare for agricultural land in Slovakia [44] is adopted. The input parameters, such as fertilizer, herbicide, etc.…”

Does Land Expropriation Experience Increase Farmers’ Farmland Value Expectations? Empirical Evidence from the People’s Republic of China

“…Regarding the influencing factors of farmland prices, existing research mainly analyzes the influencing factors of the actual transaction prices of farmland from the perspectives of physical geography, the social economy, and macroeconomic policies [46]. From the perspective of physical geographical conditions, farmlands with good water sources have high land quality [28,29,47], and farmlands close to markets have better environments [42] and higher farmland prices.…”

German Farmers’ Perspectives on Price Drivers in Agricultural Land Rental Markets—A Combination of a Systematic Literature Review and Survey Results

“…Ciaian et al [29] emphasize the positive influence of productivity growth and commodity price developments on farmland rental prices. Dupraz and Temesgen [53] as well as Takáč et al [12] also show the negative influence of increasing factor prices on the ability to pay rents and thus on the level of rental prices. The latter also examine the influence of geographical conditions (such as distance from the farms to a larger city) and agricultural structural conditions (such as farm density or average farm size) on rental prices.…”

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