Agricultural Land Price Dynamics in Europe: Convergence, Divergence, and Policy Impacts Across EU Member States

Adam Wasilewski (), Marcin Gospodarowicz and Anna Wasilewska
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Adam Wasilewski: Institute of Agricultural and Food Economics—National Research Institute, Świętokrzyska Str. 20, 00-002 Warsaw, Poland
Marcin Gospodarowicz: Institute of Banking, Warsaw School of Economics, Niepodległości Av. 162, 02-554 Warsaw, Poland
Anna Wasilewska: Faculty of Economics, Warsaw University of Life Sciences, Nowoursynowska Str. 166, 02-787 Warsaw, Poland

Sustainability, 2024, vol. 16, issue 24, 1-19

Abstract: This study investigates the dynamics of agricultural land prices across the European Union (EU) from 2006 to 2022, focusing on trends of convergence and divergence among member states. Employing a mixed-methods approach, including econometric analysis of price convergence models and comparative policy evaluation, the research identifies critical economic, policy, and environmental factors influencing land markets. The results indicate price convergence in Eastern European countries, such as Romania and Poland, driven by EU policies, including the Common Agricultural Policy (CAP), and increased foreign investment. In contrast, Western European countries like the Netherlands and Luxembourg show price stability at elevated levels due to mature markets and limited land availability. The findings reveal a nuanced interaction between EU-wide and national policies, with CAP fostering convergence in emerging markets while maintaining price stability in developed ones. This study underscores the importance of tailored policy measures to address market disparities, support smaller farmers, and promote sustainable rural development across diverse EU regions.

Keywords: agricultural land prices; price convergence and divergence; European land markets; Common Agricultural Policy (CAP); foreign investment in land (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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