Determinants of agricultural land price in the Czech Republic

Ludmila Šplíchalová

Master's thesis

Abstract:

SummaryThe agricultural land market has gradually accelerated since the Czech Republic joined to European Union. The development of the land market was significantly influenced by different types of support from the EU, unanticipated legislative changes concerning transfers of state-owned land, and state support for purchase agricultural from private owners. At present agricultural entrepreneurs, as well as non-agricultural investors, are major players on the agricultural land market. The prices of agricultural plots increased by 77% between the years 2005 and 2011 and an increasing trend is expected in the long term, but it still cannot compete with the average prices realized in the EU15. The thesis deals with the determinants affecting the development of land market prices in the Czech Republic between the years 2003 and 2015. In the practical part those factors that it is possible to quantify for the purpose of applying the method of linear regression and correlation are selected. The results of the econometric model will be verified with hypothesis that will be given on the basis of knowledge gained by studying literature sources. After verification the results with hypothesis it was found that the price of agricultural land is mainly influenced by increasing rental prices, resulting in gradual rise of the Single Area Payment Scheme. Other selected determinants influence the price with low intensity or they are not appropriate for this form of the model.

Keywords

Agricultural Land Fund, Common Agricultural Policy, Single Payment Area

Language used: English

Date on which the thesis was submitted / produced: 30. 11. 2016

Thesis defence

• Supervisor: Ing. Petr Procházka, MSc Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management