IDEAS home Printed from https://ideas.repec.org/p/eei/rpaper/eeri_rp_2016_02.html
   My bibliography  Save this paper

Market Impacts of New Land Market Regulations in Eastern EU Member States

Author

Listed:
  • Pavel Ciaian
  • Dusan Drabik
  • Jan Falkowski
  • d'Artis Kancs

Abstract

The objective of this paper is to review new restrictions imposed on land sales in selected Eastern EU Member States and to investigate the potential impacts of these restrictions on land prices, transaction distortions, and access to land. The main common element of the new regulations across the four studied countries (Latvia, Poland, Romania, Slovakia) is the introduction of the pre-emption rights to selected groups of potential buyers which tend to favor domestic and local farmers relative to external competition. However, the coverage of pre-emption rights differs strongly across countries. The regulation adopted in Slovakia is the most restrictive, followed by Latvia and Poland; Romania has adopted the least restrictive measures. We expect market transactions as well as land prices to decline due to reduced competition, causing foregone income to non-farming landowners.

Suggested Citation

  • Pavel Ciaian & Dusan Drabik & Jan Falkowski & d'Artis Kancs, 2016. "Market Impacts of New Land Market Regulations in Eastern EU Member States," EERI Research Paper Series EERI RP 2016/02, Economics and Econometrics Research Institute (EERI), Brussels.
    • Handle: RePEc:eei:rpaper:eeri_rp_2016_02
    as

    Download full text from publisher

    File URL: http://www.eeri.eu/documents/wp/EERI_RP_2016_02.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:zbw:inwedp:582015 is not listed on IDEAS
    2. Ciaian, Pavel, & Kancs, d’Artis & Swinnen, Jo & Van Herck, Kristine & Vranken, Liesbet, 2012. "Sales Market Regulations for Agricultural Land in EU Member States and Candidate Countries," Factor Markets Working Papers 116, Centre for European Policy Studies.
    3. Joel Karlsson & Pia Nilsson, 2014. "Capitalisation of Single Farm Payment on farm price: an analysis of Swedish farm prices using farm-level data," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(2), pages 279-300.
    4. Pavel Ciaian & d'Artis Kancs & Jo Swinnen, 2008. "Static and Dynamic Distributional Effects of Decoupled Payments," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 51(2), pages 20-47.
    5. H. Allen Klaiber & Klaus Salhofer & Stanley R. Thompson, 2017. "Capitalisation of the SPS into Agricultural Land Rental Prices under Harmonisation of Payments," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 710-726, September.
    6. Pavel Ciaian & D'Artis Kancs & Johan Swinnen, 2014. "The Impact of the 2013 Reform of the Common Agricultural Policy on Land Capitalization in the European Union," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(4), pages 643-673.
    7. DRABIK, Dušan & RAJČÁNIOVÁ, Miroslava, 2014. "Agricultural Land Market In Slovakia Under The New Land Acquisition Law," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(2), pages 1-4, October.
    8. Deininger, Klaus & Feder, Gershon, 2001. "Land institutions and land markets," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 6, pages 288-331, Elsevier.
    9. Pavel Ciaian & d’Artis Kancs, 2012. "The Capitalization of Area Payments into Farmland Rents: Micro Evidence from the New EU Member States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 60(4), pages 517-540, December.
    10. Plantinga, Andrew J. & Lubowski, Ruben N. & Stavins, Robert N., 2002. "The effects of potential land development on agricultural land prices," Journal of Urban Economics, Elsevier, vol. 52(3), pages 561-581, November.
    11. Van Herck, Kristine & Vranken, Liesbet, 2012. "Direct Payments and Land Rents: Evidence from New Member States," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126777, International Association of Agricultural Economists.
    12. Latruffe , Laure & Minvie, Jean Joseph & Salanié, Julien, 2013. "The Role of Environmental and Land Transaction Regulations on Agricultural Land Price: The example of Brittany," Factor Markets Working Papers 164, Centre for European Policy Studies.
    13. Guastella, G. & Moro, D. & Sckokai, P. & Veneziani, M., 2013. "The Capitalization of Area Payment into Land Rental Prices: Evidence from Italy," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152263, International Agricultural Trade Research Consortium.
    14. Pavel Ciaian & d'Artis Kancs & Sergio Gomez y Paloma, 2010. "Distributional Effects of CAP Subsidies: Micro Evidence from the EU," EERI Research Paper Series EERI_RP_2010_05, Economics and Econometrics Research Institute (EERI), Brussels.
    15. Pavel Ciaian & d’Artis Kancs & Johan Swinnen, 2010. "EU Land Markets and the Common Agricultural Policy," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(3), pages 1-31.
    16. Pavel Ciaian & d'Artis Kancs & Maria Espinosa, 2018. "The Impact of the 2013 CAP Reform on the Decoupled Payments’ Capitalisation into Land Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(2), pages 306-337, June.
    17. Paul Feichtinger & Klaus Salhofer, 2016. "The Fischler Reform of the Common Agricultural Policy and Agricultural Land Prices," Land Economics, University of Wisconsin Press, vol. 92(3), pages 411-432.
    18. Tomislav Vukina & Ada Wossink, 2000. "Environmental Policies and Agricultural Land Values: Evidence from the Dutch Nutrient Quota System," Land Economics, University of Wisconsin Press, vol. 76(3), pages 413-429.
    19. D'Artis Kancs & Pavel Ciaian, 2010. "Factor content of bilateral trade: the role of firm heterogeneity and transaction costs," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 305-317, May.
    20. Ciaian, Pavel, & Kancs, d’Artis & Swinnen, Jo & Van Herck, Kristine & Vranken, Liesbet, 2012. "Institutional Factors Affecting Agricultural Land Markets," Factor Markets Working Papers 118, Centre for European Policy Studies.
    21. Kilian, Stefan & Salhofer, Klaus, 2008. "Single Payments of the CAP: Where Do the Rents Go?," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 9(2).
    22. Jerzy Michalek & Pavel Ciaian & d’Artis Kancs, 2014. "Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the European Union," Land Economics, University of Wisconsin Press, vol. 90(2), pages 260-289.
    23. Swinnen, Johan F. M., 2002. "Political reforms, rural crises, and land tenure in western Europe," Food Policy, Elsevier, vol. 27(4), pages 371-394, August.
    24. Frédéric Courleux & Hervé Guyomard & Fabrice Levert & Laurent Piet, 2008. "How the EU Single Farm Payment should be modelled: lump-sum transfers, area payments or… what else?," Working Papers SMART 08-01, INRAE UMR SMART.
    25. Sébastien Mary, 2013. "Assessing the Impacts of Pillar 1 and 2 Subsidies on TFP in French Crop Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 133-144, February.
    26. Philippe Le Goffe, 2013. "The Nitrates Directive, incompatible with livestock farming? The case of France and Northern European countries," Post-Print hal-01208882, HAL.
    27. d’Artis Kancs & Pavel Ciaian, 2012. "The Factor Content of Heterogeneous Firm Trade," The World Economy, Wiley Blackwell, vol. 35(3), pages 373-393, March.
    28. Hans P. Binswanger & Klaus Deininger & Gershon Feder, 1993. "Agricultural Land Relations in the Developing World," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(5), pages 1242-1248.
    29. Janssen, Larry & Pflueger, Burton & Bronc McMurtry, 2013. "South Dakota Agricultural Land Market Trends 1991–2013," Research Reports 201301, South Dakota State University, Department of Economics.
    30. Janssen, Larry & Kim Dillivan & Bronc McMurtry, 2014. "South Dakota Agricultural Land Market Trends 1991–2014," Research Reports 201401, South Dakota State University, Department of Economics.
    31. Pia Nilsson & Sara Johansson, 2013. "Location determinants of agricultural land prices," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 33(1), pages 1-21, February.
    32. Ciaian, Pavel & Swinnen, Johan F.M., 2006. "AJAE Appendix: Land Market Imperfections and Agricultural Policy Impacts in the New EU Member States: A Partial Equilibrium Analysis," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 88(4), pages 1-10, November.
    33. Ciaian, Pavel, & Kancs, d’Artis & Swinnen, Jo & Van Herck, Kristine & Vranken, Liesbet, 2012. "Rental Market Regulations for Agricultural Land in EU Member States and Candidate Countries," Factor Markets Working Papers 117, Centre for European Policy Studies.
    34. Guastella, Gianni & Moro, Daniele & Sckokai, Paolo & Veneziani, Mario, 2014. "The capitalization of area payments into land rental prices: a panel sample selection approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 186375, European Association of Agricultural Economists.
    35. repec:zbw:inwedp:622016 is not listed on IDEAS
    36. Alain de Janvry, 1981. "The Role of Land Reform in Economic Development: Policies and Politics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(2), pages 384-392.
    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. 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.

    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. Pavel Ciaian & d'Artis Kancs & Maria Espinosa, 2018. "The Impact of the 2013 CAP Reform on the Decoupled Payments’ Capitalisation into Land Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(2), pages 306-337, June.
    2. Marten Graubner, 2018. "Lost in space? The effect of direct payments on land rental prices," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 45(2), pages 143-171.
    3. Pavel Ciaian & Edoardo Baldoni & d'Artis Kancs & Dušan Drabik, 2021. "The Capitalization of Agricultural Subsidies into Land Prices," Annual Review of Resource Economics, Annual Reviews, vol. 13(1), pages 17-38, October.
    4. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    5. Baldoni, Edoardo & Ciaian, Pavel, 2023. "The capitalization of CAP subsidies into land prices in the EU," Land Use Policy, Elsevier, vol. 134(C).
    6. Pavel Ciaian & D'Artis Kancs & Johan Swinnen, 2014. "The Impact of the 2013 Reform of the Common Agricultural Policy on Land Capitalization in the European Union," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(4), pages 643-673.
    7. repec:zbw:inwedp:652016 is not listed on IDEAS
    8. Pavel Ciaian & d’Artis Kancs & Johan Swinnen, 2010. "EU Land Markets and the Common Agricultural Policy," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(3), pages 1-31.
    9. H. Allen Klaiber & Klaus Salhofer & Stanley R. Thompson, 2017. "Capitalisation of the SPS into Agricultural Land Rental Prices under Harmonisation of Payments," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 710-726, September.
    10. Paul Feichtinger & Klaus Salhofer, 2016. "Decoupled Single Farm Payments of the CAP and Land Rental Prices," Working Papers 652016, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    11. Olagunju, Kehinde Oluseyi & Angioloni, Simone & Wu, Ziping, 2022. "How has the 2013 decoupled payment reform affected farmland rental values in Northern Ireland?," Land Use Policy, Elsevier, vol. 112(C).
    12. Jerzy Michalek & Pavel Ciaian & d’Artis Kancs, 2014. "Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the European Union," Land Economics, University of Wisconsin Press, vol. 90(2), pages 260-289.
    13. Di Corato, Luca & Brady, Mark V., 2019. "Passive farming and land development: A real options approach," Land Use Policy, Elsevier, vol. 80(C), pages 32-46.
    14. Ciaian, Pavel & Pokrivcak, Jan & Kancs, d'Artis, 2013. "Empirical Evidence of the Distributional Effects of the CAP in New EU Member States," Working papers 157117, Factor Markets, Centre for European Policy Studies.
    15. Feichtinger, Paul & Salhofer, Klaus, 2016. "Decoupled Single Farm Payments of the CAP and Land Rental Prices," Discussion Papers DP-65-2016, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    16. Pavel Ciaian & d'Artis Kancs & Jo Swinnen, 2008. "Static and Dynamic Distributional Effects of Decoupled Payments," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 51(2), pages 20-47.
    17. Gianni Guastella & Daniele Moro & Paolo Sckokai & Mario Veneziani, 2018. "The Capitalisation of CAP Payments into Land Rental Prices: A Panel Sample Selection Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(3), pages 688-704, September.
    18. Luigi Biagini & Federico Antonioli & Simone Severini, 2020. "The Role of the Common Agricultural Policy in Enhancing Farm Income: A Dynamic Panel Analysis Accounting for Farm Size in Italy," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 652-675, September.
    19. repec:zbw:inwedp:582015 is not listed on IDEAS
    20. Latruffe , Laure & Piet, Laurent & Dupraz, Pierre & Le Mouël, Chantal, 2013. "Influence of Agricultural Support on Sale Prices of French Farmland: A comparison of different subsidies, accounting for the role of environmental and land regulations," Factor Markets Working Papers 163, Centre for European Policy Studies.
    21. Garrone, Maria & Emmers, Dorien & Olper, Alessandro & Swinnen, Johan, 2019. "Jobs and agricultural policy: Impact of the common agricultural policy on EU agricultural employment," Food Policy, Elsevier, vol. 87(C), pages 1-1.
    22. Geoghegan, Cathal & Kinsella, Anne & O’Donoghue, Cathal, 2015. "Policy Drivers of Land Mobility in Irish Agriculture," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212658, European Association of Agricultural Economists.

    More about this item

    Keywords

    Land Market; SAPS; institutions; agricultural policy; CEE.;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • P32 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:eei:rpaper:eeri_rp_2016_02. 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: Julia van Hove (email available below). General contact details of provider: https://edirc.repec.org/data/eeriibe.html .

    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.