The distribution of the rent–price relationship of agricultural land in Germany | Zendy

Henning Schaak | Zendy; Oliver Mußhoff | Zendy

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The distribution of the rent–price relationship of agricultural land in Germany

Author(s) -

Henning Schaak,

Oliver Mußhoff

Publication year - 2021

Publication title -

european review of agricultural economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 1.4

H-Index - 60

eISSN - 1464-3618

pISSN - 0165-1587

DOI - 10.1093/erae/jbab052

Subject(s) - arable land , profitability index , agriculture , distribution (mathematics) , agricultural economics , economics , agricultural land , econometrics , scale (ratio) , production (economics) , order (exchange) , land price , land use , grassland , geography , microeconomics , mathematics , ecology , finance , mathematical analysis , cartography , archaeology , biology

This paper studies the profitability of investments in agricultural land, using the rent–price ratio (RPR) as a profitability measure. In order to allow for district-level heterogeneity, the full conditional distribution of the RPR is modelled using a generalised additive model for location, shape and scale. The analysis is based on data from Lower Saxony, Germany. The profitability of investments in land varies between and within districts. The variation can be explained by differences in the farming structure, the production programme and economic indicators. Further, differences in the distribution of the RPR between arable land and grassland are found.

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