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2008 International Congress, August 26-29, 2008, Ghent, Belgium >
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http://purl.umn.edu/44462
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| Title: | Determinants of agricultural cash rents in Germany: A spatial econometric analysis for farm-level data |
| Authors: | Breustedt, Gunnar
Habermann, Hendrik |
| Keywords: | Cash rent
farm-level data
spatial
econometrics |
| Issue Date: | 2008 |
| Abstract: | We empirically analyse the determinants of
cash rent levels for agricultural land in Lower Saxony,
Germany. We are the first to apply a spatial
econometrics approach that accounts for two types of
spatial dependence simultaneously to cash rent data at
the farm-level. Our empirical results underline the
usefulness of such an approach. Farm characteristics
which serve as a proxy for the marginal value of rented
acreage for the tenant as well as variables which
represent local competition on the land market are
significant. Among the farm characteristics, operating
revenue per hectare, share of high-value crops, soil
quality, share of rented acreage, share of arable land
relative to rented acreage, and animal density are
significant while, ceteris paribus, neither labour nor
machinery/buildings per hectare nor farm size are
significant. In particular, animal density at the regional
level increases the cash rent, underlining the importance
of local competition on the land market. The analysis
also shows that subsidies which foster competition
among farmers for rented land boost landlords’
incomes. Thus, evaluation of set-aside programs or
evaluation of public support for investment in pig or
poultry production or renewable energies has to take
such side-effects into account. |
| URI: | http://purl.umn.edu/44462 |
| Institution/Association: | European Association of Agricultural Economists>2008 International Congress, August 26-29, 2008, Ghent, Belgium |
| Total Pages: | 9 |
| Collections: | 2008 International Congress, August 26-29, 2008, Ghent, Belgium
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