EconPapers    
Economics at your fingertips  
 

Leasing of agricultural land versus agency theory: the case of Poland

Renata Marks-Bielska () and Agata Zielinska ()
Additional contact information
Renata Marks-Bielska: University of Warmia and Mazury in Olsztyn
Agata Zielinska: University of Warmia and Mazury in Olsztyn

Ekonomia i Prawo, 2018, vol. 17, issue 1, 83-102

Abstract: Motivation: Agency theory examines relations between entities as contract relations, like land owner and tenant. Polish farmland market and its ‘rules of the game’ are still changing after political transformation. Decisions and actions presented by both parts of the lease contract seems to be easier to understand, explain and predict with the research instrumentality of new institutional economy, especially agency theory. Agency relationship is the issue studied by the economists many times, but there is a need to complete it with examples, researches and practical implications. Aim: the determination of the significance of the lease in Polish agriculture with the use of agency theory. Results: Use of the analytical apparatus of agency theory allowed for the indication of critical elements in the lessee/ lessor relation. One of the most important elements of contract specification is the remuneration transferred as part of the relation. Payments in the market of leasing deriving from the Agricultural Property Agency are regulated by the institution of the lease fee. On the other hand, in the case of leases between neighbours, there are both financial instruments (e.g. settlement of tax, resignation from land subsidies for the benefit of the land owner, rent) and non-financial ones (e.g. equivalent in agricultural products, services performed with mechanical equipment, household care). The results of the study have shown that financial forms are the most popular form of payment; most indications referred to resignation from land subsidies (59.6%).

Keywords: agriculture lease; agency theory; contract (search for similar items in EconPapers)
JEL-codes: D82 L51 Q15 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.12775/EiP.2018.007 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpn:umkeip:v:17:y:2018:i:1:p:83-102

Access Statistics for this article

Ekonomia i Prawo is currently edited by Barbara Polszakiewicz and Jerzy Boehlke

More articles in Ekonomia i Prawo from Uniwersytet Mikolaja Kopernika
Bibliographic data for series maintained by Miroslawa Buczynska ().

 
Page updated 2018-05-26
Handle: RePEc:cpn:umkeip:v:17:y:2018:i:1:p:83-102