Investors’ impact on Czech farmland prices: a microstructural analysis

Jarmila Curtiss, Ladislav JelínekD, Tomáš Medonos, Martin Hruška and Silke Hüttel

European Review of Agricultural Economics, 2021, vol. 48, issue 1, 97-157

Abstract: This paper analyses farmland price formation under investors’ increased demand in the Czech Republic from 2008 to 2014. We adopt a stochastic metafrontier approach to hedonic price modelling and investigate the relative differences in farm and investor pricing. Our results provide evidence of buyer group-specific land valuations, asymmetric price dispersions and their temporal changes. These changes reflect the developments of market microstructures and market-supporting institutions induced by buyer competition. While initially significantly lower due to high market and bargaining power, prices paid by corporate/cooperative farms converged with high-level investor prices over time. Individual and family farms were largely unable to compete at the new price levels.

Keywords: farmland markets; bargaining power; non-agricultural investors; stochastic frontier analysis; metafrontier (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (11)

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