2012年-CEPS欧洲政策研究中心_Rental_Market_Regulations_for_Agricultural_Land_in_EU_Member_States_and_Candidate_Countries_26页_740kb

Summary of Rental Market Regulations for Agricultural Land in EU Member States and Candidate Countries

Core Content

This paper provides an analysis of the regulations governing the rental market for agricultural land in selected EU member states and candidate countries. It highlights the differences in regulatory frameworks between the old member states (OMS) and the new member states (NMS), as well as the impact of historical land reforms and market imperfections on current rental practices.

Main Points

1. Importance of the Rental Market

• The rental market is more significant than the sales market in most EU countries.
• The share of rented land varies widely across member states and candidate countries.
• In OMS, the share of rented land ranges from 18% in Ireland to 74% in France.
• In NMS, it ranges from 17% in Romania to 89% in Slovakia.

2. Historical Context

• The land reform process in NMS after 1989 led to the restitution of land to former owners, who are often not active in agriculture.
• Corporate farms have become dominant users of agricultural land in NMS, often through rental agreements.
• There is a strong correlation between the prevalence of land rental and the share of corporate farms in total land use.

3. Types of Regulations

The paper outlines five main types of regulations:

• Price Regulations: Include government-imposed price ceilings and floors, as well as social norms affecting payment methods and timing.
• Tenancy Duration Regulations: Vary by country, with some setting minimum contract durations and others allowing seasonal or informal contracts.
• Quantity Regulations: Not explicitly detailed, but may be related to land use and distribution.
• Transaction Costs: Include legal and administrative costs, which can be higher in NMS due to imperfect market conditions and additional regulations.
• Other Regulations: Such as inheritability of contracts and pre-emptive rights for tenants.

Key Information

4. Price Regulations

• Government Regulations: Some countries (e.g., Belgium, Netherlands, France) impose maximum or minimum rental prices.
  • In France, rental prices are determined by a département-level price index, based on average farm income and specific production types.
  • In Belgium, maximum rental prices are calculated using a tenancy coefficient, which is adjusted every three years.
  • In the Netherlands, rent ceilings are set regionally, with limited annual adjustments, leading to the emergence of a 'grey' rental market.
• Social Norms: In the NMS, rental payments in kind are more common than in cash. In Poland, over 20% of private rental contracts involved in-kind payments in 2005.
• Informal Payments: In Belgium, additional payments 'in an envelope' are common, often exceeding the official maximum price due to the minimum contract duration of 9 years.

5. Tenancy Duration Regulations

• Government Regulations: Minimum durations vary, such as 9 years in Belgium, 6 years in the Netherlands, and 5 years in Spain.
• Social Norms: In Greece and several NMS, contracts are typically seasonal.
• Career Contracts: In France, these contracts can last up to 25 years and are tied to the farmer's career. The law allows for automatic renewal unless the landowner wishes to sell the land.
• Renewal and Inheritance: Contracts are generally inheritable and can be renewed unless the landowner terminates them for sale.

6. Transaction Costs

• Type and Registration of Contracts: Contracts are often required to be registered and notarized, which increases transaction costs.
• Contract Enforcement: Legal enforcement is crucial, especially in ensuring that tenants have rights to the land and can exercise pre-emptive rights.
• Informal Contracts: In some countries, such as the Netherlands and Belgium, informal rental contracts have emerged due to strict regulations, allowing higher rents and more flexibility.

7. Other Regulations

• Inheritance of Contracts: Contracts can be inherited, which is important for the continuity of land use.
• Pre-emptive Rights: Tenants may have the right to purchase the land if the landowner intends to sell it, especially in countries like France and Bulgaria.

Conclusion

The rental market for agricultural land in the EU is shaped by a complex mix of legal regulations and social norms. While the rental market is more prevalent in NMS, it is also more regulated and subject to higher transaction costs. These factors influence the flexibility of the market, the security of tenants, and the overall efficiency of land use. The paper serves as a foundation for further analysis within the Factor Markets project and highlights the need for more liberal and flexible rental regulations to enhance market performance.