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Open AccessArticle

The Factors Affecting Farmland Rental Prices in Slovakia

1
Department of European Policies, Slovak University of Agriculture in Nitra, 94976 Nitra, Slovakia
2
Department of Law, Slovak University of Agriculture in Nitra, 94976 Nitra, Slovakia
*
Author to whom correspondence should be addressed.
Land 2020, 9(3), 96; https://doi.org/10.3390/land9030096 (registering DOI)
Received: 2 March 2020 / Revised: 18 March 2020 / Accepted: 23 March 2020 / Published: 24 March 2020
Agricultural land is a limited natural resource with increasing economic value. This study analyses land rental relationships in Slovakia, including legal rental regulations, and identifies the impact of certain factors, such as the European Union Common Agricultural Policy (CAP) payments, and geographical and economic factors on land rental prices. From the results of econometric models, it was found that certain CAP payments have an effect on rental prices, mainly the single area payment scheme (SAPS), payments for agri-environmental-climate schemes (AECS), and animal welfare, which were found to have positive effects. Other important factors found to influence rental prices are economic indicators (such as total revenue share of total costs, share of revenue from agricultural production in terms of total revenue, share of production costs as a percentage of total costs, wages, and number of employees) and geographical factors (such as region or partial production areas). However, the distance of the farm from the district city (LAU 1) and the share of farmland affected by natural constraints do not considerably affect rental prices in Slovakia. Land consolidation is a statistically significant factor according to the models; however, its impact is almost zero. Knowledge of these factors constitutes important know-how, not only for policy makers but also for the actors operating in the land rental market (e.g., landlords, tenants, experts on land valuation, and real estate agents). View Full-Text
Keywords: land rental prices; land ownership; agricultural holdings; European Union Common Agricultural Policy; factors affecting the land rental prices; Slovakia land rental prices; land ownership; agricultural holdings; European Union Common Agricultural Policy; factors affecting the land rental prices; Slovakia
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Takáč, I.; Lazíková, J.; Rumanovská, Ľ.; Bandlerová, A.; Lazíková, Z. The Factors Affecting Farmland Rental Prices in Slovakia. Land 2020, 9, 96.

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