IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i14p5622-d383710.html
   My bibliography  Save this article

The Price of Farmland as a Factor in the Sustainable Development of Czech Agriculture (A Case Study)

Author

Listed:
  • Tomáš Seeman

    (Department of Economic Theories, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 165 00 Prague 6, Czech Republic)

  • Karel Šrédl

    (Department of Economic Theories, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 165 00 Prague 6, Czech Republic)

  • Marie Prášilová

    (Department of Statistics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 165 00 Prague 6, Czech Republic)

  • Roman Svoboda

    (Department of Economic Theories, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 165 00 Prague 6, Czech Republic)

Abstract

Each year, around 2% of the four million hectares of farmland in Czechia changes owners. However, after years of significant growth in prices, a slowdown in pace and demand is expected. Rising interest rates, a strengthening of the crown and legislative changes in 2018 have influenced the price of farmland. Yet the prices of farmland in Czechia are a third of those in the countries of Western Europe, and so it still represents an interesting opportunity for investors. Currently, land is bought primarily by the farmers who work it. In Czechia, 80% of farmers farm on hired land, and rent increases are starting to be an issue for many of them. The return on the investment in agricultural land is currently around 50 years for an owner and 25 years for a farmer working the land. As research has shown, the price of farmland is an important factor in the sustainable development of agriculture in Czechia, along with the greening of production and the fight against soil erosion and the effects of climate change.

Suggested Citation

  • Tomáš Seeman & Karel Šrédl & Marie Prášilová & Roman Svoboda, 2020. "The Price of Farmland as a Factor in the Sustainable Development of Czech Agriculture (A Case Study)," Sustainability, MDPI, vol. 12(14), pages 1-17, July.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:14:p:5622-:d:383710
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/14/5622/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/14/5622/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Erik D. Hanson & Bruce J. Sherrick & Todd H. Kuethe, 2018. "The Changing Roles of Urban Influence and Agricultural Productivity in Farmland Price Determination," Land Economics, University of Wisconsin Press, vol. 94(2), pages 199-205.
    2. Sergio H. Lence, 2014. "Farmland Prices: Is This Time Different?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(4), pages 577-603.
    3. Yahui Lv & Chao Zhang & Jiani Ma & Wenju Yun & Lulu Gao & Pengshan Li, 2019. "Sustainability Assessment of Smallholder Farmland Systems: Healthy Farmland System Assessment Framework," Sustainability, MDPI, vol. 11(17), pages 1-19, August.
    4. Hualin Xie & Peng Wang & Guanrong Yao, 2014. "Exploring the Dynamic Mechanisms of Farmland Abandonment Based on a Spatially Explicit Economic Model for Environmental Sustainability: A Case Study in Jiangxi Province, China," Sustainability, MDPI, vol. 6(3), pages 1-23, March.
    5. Igor Krejčí & Pavel Moulis & Jana Pitrová & Ivana Tichá & Ladislav Pilař & Jan Rydval, 2019. "Traps and Opportunities of Czech Small-Scale Beef Cattle Farming," Sustainability, MDPI, vol. 11(15), pages 1-26, August.
    6. Ayala Wineman & Thomas S Jayne, 2018. "Land Prices Heading Skyward? An Analysis of Farmland Values across Tanzania," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(2), pages 187-214.
    7. Laura Serrano & Antonio Sianes & Antonio Ariza-Montes, 2019. "Using Bibliometric Methods to Shed Light on the Concept of Sustainable Tourism," Sustainability, MDPI, vol. 11(24), pages 1-25, December.
    8. Geerte Cotteleer & Cornelis Gardebroek & Jan Luijt, 2008. "Market Power in a GIS-Based Hedonic Price Model of Local Farmland Markets," Land Economics, University of Wisconsin Press, vol. 84(4), pages 573-592.
    9. Jiang Du & Miao Zeng & Zhengjuan Xie & Shikun Wang, 2019. "Power of Agricultural Credit in Farmland Abandonment: Evidence from Rural China," Land, MDPI, vol. 8(12), pages 1-14, December.
    10. Zdeňka Gebeltová & Karel Malec & Mansoor Maitah & Luboš Smutka & Seth Nana Kwame Appiah-Kubi & Kamil Maitah & Jeta Sahatqija & Jitka Sirohi, 2020. "The Impact of Crop Mix on Decreasing Soil Price and Soil Degradation: A Case Study of Selected Regions in Czechia (2002–2019)," Sustainability, MDPI, vol. 12(2), pages 1-16, January.
    11. Zhang, Jian & Mishra, Ashok K. & Hirsch, Stefan & Li, Xiaoshun, 2020. "Factors affecting farmland rental in rural China: Evidence of capitalization of grain subsidy payments," Land Use Policy, Elsevier, vol. 90(C).
    12. Arvydas Jadevicius & Simon Huston & Andrew Baum & Allan Butler, 2018. "Two centuries of farmland prices in England," Journal of Property Research, Taylor & Francis Journals, vol. 35(1), pages 72-94, January.
    13. Mansoor Maitah & Elena Kuzmenko & Lubos Smutka, 2016. "Real Effective Exchange Rate of Rouble and Competitiveness of Russian Agrarian Producers," Economies, MDPI, vol. 4(3), pages 1-19, June.
    14. Vasile Burja & Attila Tamas-Szora & Iulian Bogdan Dobra, 2020. "Land Concentration, Land Grabbing and Sustainable Development of Agriculture in Romania," Sustainability, MDPI, vol. 12(5), pages 1-19, March.
    15. Blanca Estela Bernal Escoto & Malena Portal Boza & Duniesky Feitó Madrigal, 2019. "Sustainable Tourism: A Competitiveness Strategy Perspective in Baja California," Sustainability, MDPI, vol. 11(24), pages 1-15, December.
    16. Yuchen Guo & Wei Song, 2019. "Spatial Distribution and Simulation of Cropland Abandonment in Wushan County, Chongqing, China," Sustainability, MDPI, vol. 11(5), pages 1-25, March.
    17. Rike Stotten & Michaela Maurer & Hannes Herrmann & Markus Schermer, 2019. "Different Forms of Accommodation in Agritourism: The Role of Decoupled Farmer-Based Accommodation in the Ötztal Valley (Austria)," Sustainability, MDPI, vol. 11(10), pages 1-27, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. W. A. M. A. N. Illankoon & Chiara Milanese & Anurudda Karunarathna Karunarathna & A. M. Y. W. Alahakoon & Puhulwella G. Rathnasiri & Maria Medina-Llamas & Maria Cristina Collivignarelli & Sabrina Sorl, 2023. "Development of a Dual-Chamber Pyrolizer for Biochar Production from Agricultural Waste in Sri Lanka," Energies, MDPI, vol. 16(4), pages 1-20, February.
    2. Nikola Tričković & Vukašin Rončević & Nikola Živanović & Tara Grujić & Luka Stefanović & Nikola Jovanović & Miodrag Zlatić, 2023. "Ecological and Economic Effects of Applying the Future Agricultural Production Structure Model (FAPSMS): The Case Study of the Barička River Basin," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    3. Zhongcheng Yan & Feng Wei & Xin Deng & Chuan Li & Yanbin Qi, 2021. "Does Land Expropriation Experience Increase Farmers’ Farmland Value Expectations? Empirical Evidence from the People’s Republic of China," Land, MDPI, vol. 10(6), pages 1-23, June.
    4. Bohan Hou & Wenwen Yu & Zhengtong Chen & Jin Yu, 2023. "How Does the Farmland Management Scale Affect Grain Losses at Harvest? Analysis of Mediating Effect of Agricultural Input Based on Harvesting," Land, MDPI, vol. 12(3), pages 1-15, February.
    5. Jarmila Lazíková & Ľubica Rumanovská & Ivan Takáč & Piotr Prus & Alexander Fehér, 2021. "Regional Differences of Agricultural Land Market in Slovakia: A Challenge for Sustainable Agriculture," Agriculture, MDPI, vol. 11(4), pages 1-20, April.
    6. Karolina Pawlak & Luboš Smutka & Pavel Kotyza, 2021. "Agricultural Potential of the EU Countries: How Far Are They from the USA?," Agriculture, MDPI, vol. 11(4), pages 1-21, March.

    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. 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).
    2. Lin, Wensheng & Huang, Jikun, 2021. "Impacts of agricultural incentive policies on land rental prices: New evidence from China," Food Policy, Elsevier, vol. 104(C).
    3. Alexander V. Prishchepov & Florian Schierhorn & Fabian Löw, 2021. "Unraveling the Diversity of Trajectories and Drivers of Global Agricultural Land Abandonment," Land, MDPI, vol. 10(2), pages 1-8, January.
    4. Steven B. Caudill & Franklin G. Mixon, 2020. "Estimating Bargaining Power in Real Estate Pricing Models: Conceptual and Empirical Issues," JRFM, MDPI, vol. 13(5), pages 1-8, May.
    5. Qi, Yuan & Hou, Yuchen & Li, Yaoyao & Li, Luyue & Zhang, Jiaqing & Chang, Yuyang & Zhu, Daolin, 2023. "The price gap between state-owned and collective farmlands: Evidence from Xinjiang and Heilongjiang, China," Land Use Policy, Elsevier, vol. 124(C).
    6. Jiang Du & Miao Zeng & Zhengjuan Xie & Shikun Wang, 2019. "Power of Agricultural Credit in Farmland Abandonment: Evidence from Rural China," Land, MDPI, vol. 8(12), pages 1-14, December.
    7. Pei-Ing Wu & Ching-En Su & Je-Liang Liou & Ta-Ken Huang, 2023. "Evaluation of the Contribution of Farmland Attributes to the Total Benefit from Its Contamination Remediation: Evidence from Taiwan," Land, MDPI, vol. 12(5), pages 1-22, April.
    8. Miroslava Navrátilová & Markéta Beranová & Lucie Severová & Karel Šrédl & Roman Svoboda & Josef Abrhám, 2020. "The Impact of Climate Change on the Sugar Content of Grapes and the Sustainability of their Production in the Czech Republic," Sustainability, MDPI, vol. 13(1), pages 1-18, December.
    9. Yemei Li & Yanfei Shan & Ying Chen, 2021. "Analysis of Farmland Abandonment and Government Supervision Traps in China," IJERPH, MDPI, vol. 18(4), pages 1-27, February.
    10. Castro, P. & Pedroso, R. & Lautenbach, S. & Vicens, R., 2020. "Farmland abandonment in Rio de Janeiro: Underlying and contributory causes of an announced development," Land Use Policy, Elsevier, vol. 95(C).
    11. Theodosios Anastasios Perifanis, 2022. "The Macroeconomic Results of Diligent Resource Revenues Management: The Norwegian Case," Energies, MDPI, vol. 15(4), pages 1-14, February.
    12. Guo Chen & Amy K Glasmeier & Min Zhang & Yang Shao, 2016. "Urbanization and Income Inequality in Post-Reform China: A Causal Analysis Based on Time Series Data," PLOS ONE, Public Library of Science, vol. 11(7), pages 1-16, July.
    13. Luis Araya-Castillo & Felipe Hernández-Perlines & Hugo Moraga & Antonio Ariza-Montes, 2021. "Scientometric Analysis of Research on Socioemotional Wealth," Sustainability, MDPI, vol. 13(7), pages 1-26, March.
    14. Wojciech Sroka & Jaroslaw Mikolajczyk & Tomasz Wojewodzic & Boguslawa Kwoczynska, 2018. "Agricultural Land vs. Urbanisation in Chosen Polish Metropolitan Areas: A Spatial Analysis Based on Regression Trees," Sustainability, MDPI, vol. 10(3), pages 1-22, March.
    15. Han Li & Wei Song, 2021. "Cropland Abandonment and Influencing Factors in Chongqing, China," Land, MDPI, vol. 10(11), pages 1-21, November.
    16. Letort, Élodie & Temesgen, Chalachew, 2014. "Influence of environmental policies on farmland prices in the Bretagne region of France," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 95(1).
    17. repec:zbw:inwedp:582015 is not listed on IDEAS
    18. Stefan Seifert & Christoph Kahle & Silke Hüttel, 2021. "Price Dispersion in Farmland Markets: What Is the Role of Asymmetric Information?," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1545-1568, August.
    19. Ana León-Gómez & Daniel Ruiz-Palomo & Manuel A. Fernández-Gámez & Mercedes Raquel García-Revilla, 2021. "Sustainable Tourism Development and Economic Growth: Bibliometric Review and Analysis," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    20. Ángel Acevedo-Duque & Alejandro Vega-Muñoz & Guido Salazar-Sepúlveda, 2020. "Analysis of Hospitality, Leisure, and Tourism Studies in Chile," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    21. Dieter Pennerstorfer, 2022. "Farm exits and competition on the land market: Evidence from spatially explicit data," Economics working papers 2022-09, Department of Economics, Johannes Kepler University Linz, Austria.

    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:gam:jsusta:v:12:y:2020:i:14:p:5622-:d:383710. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.