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Determinants of Agricultural Cash Rents in Germany: A Spatial Econometric Analysis for Farm-Level Data AgEcon
Breustedt, Gunnar; Habermann, Hendrik.
This article analyses determinants for 2001 farmland rental prices from 4376 farms in Germany. We derive our regression equation from a spatial reaction function to allow for spatial transmission of rental prices. Results from a general spatial model show that a € 1 per hectare higher rental price in a farmer’s neighbourhood coincides with a € 0.57 higher rental price he has to pay. For policy evaluation we estimate the marginal incidence of regional EU per-hectare premiums. We find a value significantly above one and propose an explanation for this counterintuitive result based on the long-running nature of rental contracts, simultaneity of premium introduction and intervention price cuts as well as assumed stickiness of rental prices. Regional livestock...
Tipo: Conference Paper or Presentation Palavras-chave: Farmland rental price; Per-hectare premium; Spatial econometrics; Subsidy incidence; Farm Management; Land Economics/Use; Political Economy.
Ano: 2009 URL: http://purl.umn.edu/51685
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