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Agroholdings and Land Rental Markets: A Spatial Competition Perspective

Author

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  • Graubner, Marten
  • Ostapchuk, Igor
  • Gagalyuk, Taras

Abstract

With the emergence of large, horizontally integrated farm enterprises especially in Eastern European countries, the question arises whether these agroholdings exercise market power in (local) land markets. Using a theoretical framework of spatial competition that accounts for the presence of multi-farm agroholdings, we derive equilibrium prices under alternative spatial competition settings. Based on the investigation of Ukrainian farms, we provide a theoretical explanation and empirical support that farms affiliated with an agroholding possess (ceteris paribus) more land and set higher land rental prices compared to independent farms. The results indicate that agroholdings can act as price leaders in local land markets.

Suggested Citation

  • Graubner, Marten & Ostapchuk, Igor & Gagalyuk, Taras, 2019. "Agroholdings and Land Rental Markets: A Spatial Competition Perspective," 165th Seminar, April 4-5, 2019, Berlin, Germany 288297, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa165:288297
    DOI: 10.22004/ag.econ.288297
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    Cited by:

    1. Cord-Friedrich von Hobe & Marius Michels & Oliver Musshoff, 2021. "German Farmers’ Perspectives on Price Drivers in Agricultural Land Rental Markets—A Combination of a Systematic Literature Review and Survey Results," Land, MDPI, vol. 10(2), pages 1-22, February.
    2. Balmann, Alfons, 2020. "Agrarstrukturgesetzentwurf Sachsen-Anhalt: Faktencheck und Einordnung," FORLand Project Publications 308576, University of Natural Resources and Applied Life Sciences, Vienna, Department of Economics and Social Sciences.

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    Keywords

    Land Economics/Use;

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