Abstract
Agricultural and forestry land markets are regulated in several European countries. However, assessing the economic consequences of land market regulation for agricultural and forestry firms is methodologically challenging for various reasons. The aim of this study is to highlight the usefulness of exploring expert stakeholders’ mental models in order to gain insights into the economic impacts of agricultural and forestry land market regulation. We use thematic analysis based on in-depth interview data to explore Swedish expert stakeholders’ mental models concerning the regulation of the Swedish agricultural and forestry land market. This research strategy facilitated a rich understanding of the effects of land regulation on economic consequences. Findings indicate that current regulation does not have any major impact on the economic situation of agricultural and forestry firms in Sweden. This is interesting from the perspective of agricultural and forestry land market policy.
Highlights
IntroductionFor farms and forestry owners, securing access to a sufficient amount of agricultural and forestry land is one of the most important areas of strategic focus
In agriculture and forestry, land is a key production factor
We focus on the possible consequences of the Swedish agricultural and forestry land market regulation in relation to the prospects of the favourable business development of farms and forestry owners and the potential effects of less strict regulation
Summary
For farms and forestry owners, securing access to a sufficient amount of agricultural and forestry land is one of the most important areas of strategic focus. Inherent properties of land, such as immobility, suggest that new land can only become available if a land-owner, such as a farmer, decides to stop cultivating it altogether, assuming all land is already used (Hüttel et al 2016). This is likely to further intensify competition for land and thereby increase prices. For new farmers and forestry owners entering the industry, as well as for expanding farmers and forestry owners, high land prices can cause significant barriers due to the corresponding need for a cash outlay at the point of purchase and the subsequent need for cash to manage instalment and interest payments
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