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Determinants of German land rental prices – an analysis aimed at enhancing the competitiveness of organic farming and other forms of sustainable agriculture

Project


Project code: 2811OE114
Contract period: 01.07.2012 - 30.06.2014
Budget: 116,140 Euro
Purpose of research: Applied research

This project aims at supporting the objective of the BĂ–LN to improve the general framework of the organic farming sector and other forms of sustainable agriculture. Focusing on the organic farming sector, the project assesses the current situation of the land rental market in Germany and, thereby, accounts for spatial aspects. To analyze determinants of land rental prices and their potential differences in space we draw on secondary data from the official German farm census conducted in 2010. Using spatial econometric methods we analyze information on organic and conventional farms. To fill gaps in knowledge and experience and to ensure the relevance of the results from a practical viewpoint, we additionally perform explorative interviews with organic landlords and conduct a one-day workshop with experts from the organic farming sector. Based on two different empirical approaches, recommendations enhancing the competitiveness of organic farming and other forms of sustainable agriculture are given.

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