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Possible Effects on EU Land Markets of New CAP Direct Payments

Abstract

The objective of this study is to assess the impact of the possible effects of the CAP reform
proposals, i.e. the proposed new CAP payments, on EU land.
There are important differences among land markets in EU Member States with respect to
 The nature of the land market (exchanges), in particular the role of rental versus
sales markets;
 Level of agricultural land prices;
 Evolution of agricultural land sales and rental prices;
 Land market regulations and institutions.
The prevalence of land renting varies significantly among EU countries, ranging from 17%
in Ireland where most land is owned by farms, up to 96% in Slovakia where almost all land
is rented by farms.
Land sales prices are considerably lower in the EU-12 than in the EU-15. The lowest prices can be observed in Lithuania (536 euro/ha), followed by Romania (879 euro/ha) and Slovakia (981 euro/ha) and they range up to 22053 euro/ha in Belgium and 30235 euro/ha in the Netherlands. Rental prices are also much lower in the EU NMS than in the EU OM.
Rental prices in the EU range from 15 euro/ha in Slovakia to 97 euro/ha in Bulgaria to 397 euro/ha in Denmark and 429 euro/ha in the Netherlands. There are also major differences in regulation of land markets.

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LAN/GEN/117 ELAN/GEN/117 EBookmainavailable
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