Learning from Agricultural Land Market Regulation Policies in EU Member States

Abstract

This article draws from economic theory and the recent European Commission report on agricultural land market regulation to assess the suitability of selected regulatory policies for agricultural land markets in Ireland. Insights from policy in other EU Member States indicates that some flexibility is always required to permit the existence of temporary land leasing contracts. Farmland rental prices in Ireland have mainly followed the underlying returns to agriculture and been much less influenced by speculative bubbles relative to farmland sales markets. The land rental data for 2019 do not point to the need for maximum price regulation. The availability of reliable statistics is not a sufficient condition to prevent bubbles from emerging, but farmland markets need to be closely monitored with up-to-date official statistics informing potential market participants and public policy.