Farm land rent in the European Union

Abstract

Great share of rented land in total utilised area as well as a significant variability of land rent and market prices of land causes a need of research activity that would assess which factors influence the land rent as well as the price of land and how significant such factor are in each state. An average land rent is significantly lower in new member states compared to EU 15 members. There is a strong dependence of land rent on the intensity of production. The influence of subsidies to land rent reports moderate to medium dependence. The same relation occurs in case of the relation of the farm income and land rent. Positive increase of production intensity was connected to lower production use of land rent i.e. a decrease of its cost/revenue ratio. This is reflected in a relative saving of land rent. States with greater land rent per ha of agricultural area usually reports greater saving. An increase of land rent in new member states of the European Union is presumed so that it will be necessary to increase the intensity of production in the corresponding way.