Market Price and Supply of Farmland as a Means of Supporting the Wider Development of Sustainable Agricultural Production in Czechia (a Case Study)
2023
Jiří Mach | Tatsiana Dauhiniova | Lenka Kopecká | Marie Prášilová | Michal Štěbeták | Lucie Severová | Elizbar Rodonaia | Roman Svoboda | Eva Daniela Cvik | Milan Paták
The goal of this article is to predict the further development of the market price of farmland in Czechia. As part of this goal, the environmental and socio-economic factors affecting the quantity and quality of farmland and, subsequently, the amount of its market price will be discussed. In addition to the quality of the farmland, the market price of individual plots of land is influenced by a number of other factors, such as the size and shape of the plot, location, erosion risk, the concluded usufructuary lease agreements, competition from buyers in the vicinity, and other factors. The average market price of farmland in Czechia was 29.4 CZK/m<sup>2</sup> in 2021, which represents an increase of 16.1% against the amount of 25.3 CZK/m<sup>2</sup> in 2020. According to the results of the statistical analysis, it is possible to assume a constant increase in the prices of farmland precisely because of the ever-decreasing area of land intended for agricultural production. Another factor for the increase in prices can be increased inflation. In 2027, market prices for farmland could reach up to 40 CZK per m<sup>2</sup>. Nevertheless, Czechia is among the countries with the lowest market price of farmland; the price is even lower than in neighboring Poland or Spain. This also contributes to the fact that the market prices of farmland in Czechia are increasing at a relatively fast pace every year.
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