The Price of Farmland as a Factor in the Sustainable Development of Czech Agriculture (A Case Study)

Abstract

Each year, around 2% of the four million hectares of farmland in Czechia changes owners. However, after years of significant growth in prices, a slowdown in pace and demand is expected. Rising interest rates, a strengthening of the crown and legislative changes in 2018 have influenced the price of farmland. Yet the prices of farmland in Czechia are a third of those in the countries of Western Europe, and so it still represents an interesting opportunity for investors. Currently, land is bought primarily by the farmers who work it. In Czechia, 80% of farmers farm on hired land, and rent increases are starting to be an issue for many of them. The return on the investment in agricultural land is currently around 50 years for an owner and 25 years for a farmer working the land. As research has shown, the price of farmland is an important factor in the sustainable development of agriculture in Czechia, along with the greening of production and the fight against soil erosion and the effects of climate change.