Search Results (3)

This study investigates the dynamics of agricultural land prices across the European Union (EU) from 2006 to 2022, focusing on trends of convergence and divergence among member states. Employing a mixed-methods approach, including econometric analysis of price convergence models and comparative policy evaluation, the research identifies critical economic, policy, and environmental factors influencing land markets. The results indicate price convergence in Eastern European countries, such as Romania and Poland, driven by EU policies, including the Common Agricultural Policy (CAP), and increased foreign investment. In contrast, Western European countries like the Netherlands and Luxembourg show price stability at elevated levels due to mature markets and limited land availability. The findings reveal a nuanced interaction between EU-wide and national policies, with CAP fostering convergence in emerging markets while maintaining price stability in developed ones. This study underscores the importance of tailored policy measures to address market disparities, support smaller farmers, and promote sustainable rural development across diverse EU regions. Full article

Irrigation contributes to land and ecosystem degradation, especially in intensive farming areas. However, in marginal areas, long-established irrigation systems also supply agroecosystem services. This study aimed to identify and prioritize the external benefits provided by irrigation in extensive grazing farms in an Italian alpine region (Aosta Valley, NW Italy). Three local stakeholder groups (land irrigation consortia members, non-farmer users of the irrigation water service, and non-user citizens) engaged in focus group discussions. The transcriptions were analyzed with an integrated subjective and computer-assisted approach. The main result of the study showed that a convergence of stakeholder opinions led to prioritization of the same four benefits, i.e., hydro-geological and land maintenance, traditional agricultural landscape conservation, biodiversity conservation, and leisure recreational activities provision. Incorporating this information into decision-making processes is relevant in marginal mountain areas, especially in light of the implementation of the water pricing policy laid down in the EU Water Framework Directive. To this end, the economic value of the external benefits should be considered along with the recovery costs for water services. Such information is essential to balance the environmental costs of irrigation and to compare the resource cost of alternative water uses. Full article

This research deals with the problem of agricultural land market efficiency using the spatial market integration concept as well as the present value (PV) model. Empirically, it aims to test the convergence of agricultural land prices across Polish provinces. In order to check the law of one price (LOP), good-quality, medium-quality and bad-quality land sales markets are examined separately. Furthermore, this study is complemented by an analysis of the drivers behind agricultural land price convergence. The main method of testing price convergence is the log t regression. The latter was performed in two configurations, i.e., based on trend components of time series extracted using the Hodrick–Prescott filter and the Hamilton filter. Additionally, traditional β- and σ-convergence tests were applied. The obtained results indicated that agricultural land prices tend to converge in relative terms, which means that the provinces share a common long-run growth path. This finding and estimates of traditional convergence tests prove the increasing integration in the agricultural land market in Poland. There is no evidence, however, to support the conclusion that the absolute version of the long-run LOP holds. Moreover, using dynamic fixed effects models, it was identified that for good-, medium- and bad-quality land prices almost the same drivers of convergence apply. The only differences concern the strength of the influence of independent variables on prices of farmland of various types. Additionally, bad-quality land prices are the only ones which are affected by livestock density. Furthermore, estimates of the present value model finally confirmed that the agricultural land sales market in Poland cannot be considered as efficient. Full article