Agricultural Land Markets - Efficiency and Regulation (FORLand II) – 2020 until 2023
Subproject 4 “Is regulating agricultural land prices warranted? - A microstructure analysis of its impact and justification”
Funding: German research foundation (DFG) research unit FOR2569, second funding period
Summary:
A primary concern of existing and proposed regulation of farmland markets has been justified by the perceived risks of farmers being “price out of the market” and a subsequent loss of the “sustainable farming structure”. This risk is suspected to have considerably increased because of new demands for land from investors, urban and industrial sprawl and renewable energy policies. In the initial funding period of the FORLand research unit, we have focused on land prices as the main outcome variable to accesses justifications for new regulation and effects of existing regulation. In phase II, we will continue to focus again on prices but broaden our perspective to the interrelation of the new drivers and regulation and to other market outcomes such as farming structure that are at the heart of land market regulation in Germany. Thus, in this sub-project, we will (1) quantify price impacts of new demand drivers including energy and other polices, and aim at analyzing the potential direct and indirect impact channels through the market microstructure; (2) investigate the effects of land price increases and land market regulation intensity on a broader set of market outcomes such as farming and land-use structure; (3) broaden our regional perspective by contrasting price formation in North-Rhine Westphalia and Brandenburg to compare farmland markets with different farm and market structure. To identify impact channels of the new drivers and regulation on market microstructure, prices and other market outcomes, in phase II, we will expand the existing methodological portfolio of hedonic regression and treatment effect estimation by structural equation modelling approaches.
Project team:
Prof. Dr. Silke Hüttel, Dr. Stefan Seifert, Lars Isenhardt, Saskia Wolff (University of Bonn)
Prof. Dr. Axel Werwatz, Dr. Jens Kolbe (TU Berlin)
Collaboration partners:
Prof. Dr. Oliver Mußhoff (Uni Göttingen)
Prof. Dr. Martin Odening, Prof. Dr. Matthias Ritter (HU Berlin)
Prof. Dr. Tobia Lakes, Prof. Dr. Daniel Müller (HU Berlin)
Prof. Dr. Vladislav Valentinov (IAMO Halle)
Prof. Dr. Marianne Penker, Prof. Dr. Klaus Salhofer (BOKU Wien)
Prof. Dr. Alfons Balmann (IAMO Halle)
Resources:
Contact:
Prof. Dr. Silke Hüttel (s.huettel@ilr.uni-bonn.de)
Dr. Stefan Seifert (s.seifert@ilr.uni-bonn.de)