Can land market regulations fulfill their promises?

Arbeitspapier

After land prices in Germany increased continuously since 2006, policy makers, representatives of farmers' unions, NGOs, and farmers started and continued to discuss or propose new land market regulations to stop price increases and to protect particularly smaller farmers. In this paper we analyze different types of regulations for the land rental market with the agent-based model AgriPoliS. Our simulation results show that price and farm size limitations may inhibit rental price increases and reduce structural change. The regulations do however not lead to a conservation in the number of small farms; neither do they have a substantial positive impact on their profitability and competitiveness. Many small farms still exit agricultural production and only few are able to grow into a larger size class. Beyond redistributional costs, e.g. beared by landowners, economic and social costs result from reduced average economic land rents, less regional value-added and less employment caused by a reduced functionality of the land market and biased incentives.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: FORLand-Working Paper ; No. 12 (2019)

Classification and Topics

• Classification: Wirtschaft ; Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment ; Agricultural Policy; Food Policy ; Computational Techniques; Simulation Modeling
• Subject: structural change ; land market ; land market regulation ; agent-based modeling

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Heinrich, Florian ; Appel, Franziska ; Balmann, Alfons
• Event: Veröffentlichung
• (who): Humboldt-Universität zu Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets - Efficiency and Regulation"
• (where): Berlin
• (when): 2019

Further information

• DOI: doi:10.18452/20890
• Handle: http://hdl.handle.net/10419/208388
• URN: urn:nbn:de:kobv:11-110-18452/21619-0
• Last update: 10.03.2025, 11:41 AM CET