The determinants of the farmland market

Land is a fixed resource and represents one of the main factors of farm production. In Italy, as in the rest of Europe, structural change is continuing, and land managed in the form of ownership is decreasing while land managed in the form of rent is increasing. The European Parliament in 2017 asked all Member States to review their land regulation to avoid the concentration of land in the hands of a few large farms and to guarantee fair access to this productive factor. This research aims to explore the agricultural land market by identifying endogenous and exogenous factors that may influence it and the effect these may have. A literature review was conducted to develop the conceptual model. Based on this model and the available data, a probit regression analysis was performed on the FADN-Italy 2013-2020 data. To capture the dynamics within the land market and to study land regulation, a qualitative analysis of semi-structured questionnaires was conducted to experts in the Italian and French market. The research showed that endogenous factors related to the farm structural characteristics and farmers socio-demographic characteristics, and exogenous factors related to the macroeconomic context and land regulation influenced the land market between 2013 and 2020. These factors do not act independently but influence each other. The two empirical studies presented are complementary and have been valuable in conducting exploratory research into the complex system of the agricultural land market. Understanding the factors that influence the land market and their effects can be helpful for policymakers in implementing policies and land regulations that can improve the competitive position of farmers in the land market, either directly or indirectly.