How does tenancy affect farmland prices? Effects of lease status, lease term and buyer type
نویسندگان
چکیده
Purpose Lease contracts at the time of sale influence buyers' expectations about future returns farmland ownership and may thus contribute to price dispersion. This paper investigates conjecture that existing land lease sellers' costs being information deficient their bargaining position, expectation formation returns, ultimately price. Design/methodology/approach The authors link different levels information, search, three buyer types use intentions. Relying on a rich dataset transactions in German Federal State Saxony-Anhalt from 2014 2019, hedonic pricing model investigate five hypotheses applying multivariate one-sided tests. Findings find buyer-specific effects related status term lot. Tenant buyers pay less than non-farmer for leased lots, whereas non-tenant farmers markup. While prices decrease all groups with an increasing term, this effect is strongest farmer buyers. study’s results suggest contract impacts deficient, positions formation, discovery process. Originality/value To authors’ knowledge, first study decomposes tenancy by type term. provides insights into dispersion identical characteristics explains why empirical studies have found mixed or no evidence
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ژورنال
عنوان ژورنال: Agricultural Finance Review
سال: 2022
ISSN: ['0002-1466', '2041-6326']
DOI: https://doi.org/10.1108/afr-03-2022-0038