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Concerning the production structure, experts have said that there are strong negative effects on bull fattening, suckler cow keeping, dairy farming and sheep keeping. On arable farming, the SPS has no effect. However, Figure 34 shows a different picture. From 2004 to 2005 the share of field crop farms declined by almost 2 %. But this shows not a change in the production structure, it is the result that payments no longer being coupled to the products. Hence, standard gross margins of field crops in which the coupled direct payments were included are lower and the standard gross margins of livestock production have a greater weight.

Figure 34: Farm structure according type of farm from 2003 to 2006 2006 22.9% 12.9% 27.0% 37.3%

–  –  –

2003 25.7% 10.4% 33.0% 33.9% 0% 20% 40% 60% 80% 100% Source: SMUL, 2007.

Impact of the introduction of decoupled payments on functioning of the German land market 75 The labour force was not influenced by decoupling; rather, we can observe a long-term trend of steadily-increasing efficiency and declining livestock production in Saxony.

A.3.8. Effects of changes in SFP on land values Changes in SFP are the same throughout Germany, thus we can not identify specific affects of such changes on land values for the various regions. Possible affects are listed in the main report.

A.3.9. Conclusions The land rental and, especially, the sales market in the Saxonian Loess Area are strongly influenced by its socialistic heritage. The share of land that is rented is 81 % (STATISTISCHES BUNDESAMT, 2005), a percentage which has been declining. Land sales prices (around €4,000/ha) are strongly influenced by the BVVG trust company’s practice of privatising land;

BVVG offers land to farmers and sells it to the highest bidder. In some areas, the Harz IV law has had an impact on sales prices, because it stipulates that in order to received unemployment benefits, people must sell their property for any price before receiving public aid.

In various interviews, experts have stated that decoupling has had no significant impact on neither the currently increasing land sales prices, nor on the steadily increasing land rental prices.

Furthermore, the land market in the Saxonian Loess Area has been unaffected by other policy measures; sale and rental prices are more influenced by agricultural commodity prices and by increasing productivity.

Urban pressure and infrastructure projects are of minor importance to the rental market as the population in East Germany declines; there are only two main centres in the Saxonian Loess Area – Leipzig and Dresden.

Structural change in regards to changes in the number of farms is also left unaffected by decoupling within Saxony, even as the number of full- and part-time farms that applied for payments has increased. The reason for this is that with decoupling, grassland is also eligible for payments and many of these small farms have a high proportion of grassland.

It can also be observed that within the production structure, decoupling has led to a decrease in beef fatting as well as in the raising of suckler cows and sheep.

An increase in grassland rental prices can be expected with future changes in the SFP scheme, as payments for grassland are increasing as we move towards a regional payment in

2013. However, this is expected to happen throughout Germany.








WENDT, H. (2007):

Support scheme of food processing firms: A driving force for rural development?

No. 106 BOJNEC, Š., FERTŐ, I. (2007):

Comparative advantages in agro-food trade of Hungary, Croatia and Slovenia with the European Union

No. 107 FERTŐ, I. (2007):

Spatial developments of Hungarian agriculture in the transition: The case of crop production

No. 108 BRUISCH, K. (2007):

Entwicklungstendenzen landwirtschaftlicher Familienbetriebe in Russland seit

No. 109 HOCKMANN, H., PIENIADZ, A., GORAJ, L. (2007):

Modeling heterogeneity in production models: Empirical evidence from individual farming in Poland

No. 110 BROMLEY, D. W. (2007):

Evolutionary institutional change for sustainable rural livelihoods in Central and Eastern Europe

No. 111 МАКАРЧУК, O., ХОКМАНН, Х., ЛИССИТСА, A. (2007):

Экономический анализ биоэнергетики, как источника доходов аграрных предприятий

No. 112 SCHNICKE, H., HAPPE, K., SAHRBACHER, C. (2007):

Structural change and farm labour adjustments in a dualistic farm structure:

A simulation study for the Region Nitra in southwest Slovakia No. 113 BUCHENRIEDER, G., MÖLLERS, J., HAPPE, K., DAVIDOVA, S., FREDRIKSSON, L., BAILEY, A., GORTON, M., KANCS, D'A., SWINNEN, J., VRANKEN, L., HUBBARD, C.,


Conceptual framework for analysing structural change in agriculture and rural livelihoods

No. 114 ЛЕВКОВИЧ, И., ХОКМАНН, Х. (2007):

Международная торговля и трансформационный процесс в агропродовольственном секторе Украины

No. 115 ČECHURA, L. (2008):

Investment, credit constraints and public policy in a neoclassical adjustment cost framework

No. 116 FRITZSCH, J. (2008):

Applying fuzzy theory concepts to the analysis of employment diversification of farm households: Methodological considerations

No. 117 PETRICK, M. (2008):

Landwirtschaft in Moldova

No. 118 SROKA, W., PIENIĄDZ, A. (2008):

Rolnictwo obszarów górskich Bawarii przykładem dla Karpat polskich?

Studium porównawcze

No. 119 MEYER, W., MÖLLERS, J., BUCHENRIEDER, G:. (2008):

Does non-farm income diversification in northern Albania offer an escape from rural poverty?

No. 120 WEITZEL, E.-B., KESKIN, G., BROSIG, S. (2008):

Der türkische Tomatensektor – Regionale Gesichtspunkte und räumliche Marktintegration

No. 121 SALASAN, C., FRITZSCH, J. (2008):

The role of agriculture for overcoming rural poverty in Romania

No. 122 SROKA, W., HAPPE, K. (2009):

Vergleich der Berglandwirtschaft in Polen und Deutschland

No. 123 SROKA, W., HAPPE, K. (2009):

Förderung der Entwicklung des Ländlichen Raumes in Polen und Bayern

No. 124 MÖSER, N. (2009):

Untersuchung der Präferenzen russischer Fachbesucher für ausgewählte Messeleistungen

No. 125 PAVLIASHVILI, J. (2009):

Servicekooperativen – Ein Modell für die georgische Landwirtschaft?

No. 126 WANDEL, J. (2009):

Agroholdings and clusters in Kazakhstan’s agro-food sector

No. 127 ШАЙКИН, В. В., ВАНДЕЛЬ, Ю. (2009):

Развитие учения о сельскохозяйственных рынках в России в ХVIII-ХХ веках

No. 128 WANDEL, J. (2010):

The cluster-based development strategy in Kazakhstan’s agro-food sector:

A critical assessment from an "Austrian" perspective No. 129 MÖLLER, L., HENTER, S. H., KELLERMANN, K., RÖDER, N., SAHRBACHER, C.,

ZIRNBAUER, M. (2010):

Impact of the introduction of decoupled payments on functioning of the German land market. Country report of the EU tender: "Study on the functioning of land markets in those EU member states influenced by measures applied under the common agricultural policy". May 2008.

Die Discussion Papers sind erhältlich beim Leibniz-Institut für Agrarentwicklung in Mittelund Osteuropa (IAMO) oder im Internet unter http://www.iamo.de.

The Discussion Papers can be ordered from the Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO). Use our download facility at http://www.iamo.de.

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