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Author(s): Jana Ladvenicová, Silvia Miklovičová

Title: Land Purchase and Land Lease by Agricultural Companies in Nitra County

Source: International Scientific Days 2018 :: Towards Productive, Sustainable and Resilient Global Agriculture and Food Systems :: Proceedings

ISBN: 978-80-7598-180-6


Publisher: Wolters Kluwer ČR, Prague

PY, pages: 2018, 1005-1020

Published on-line: 2018-11-09

Language: eng

Abstract: Land is important production factor without it the agricultural production could not exist. Agricultural companies can purchase or lease the land and operate on it. In the paper we quantify the net present value by land purchase and land lease by agricultural companies in Nitra County. We apply the calculation on internal rate of return, modified internal rate of return, profitability index, payback period and average profitability to evaluate the efficiency of the land use. Nitra County belongs to the most productive agricultural Counties in Slovakia and thanks to its location also to the hottest and the driest area in Slovakia. It has good climatic conditions to raise various agricultural crop plants. By land lease the percentage of the lease was estimated in range from 0.5 to 3 % from official land price. The value of the land lease was determined by percentage from the official land price in Nitra County in range from 11.86 €/ha to 71.18 €/ha. The net present value by land lease reaches the negative values in this County it means that is not profitable to lease the land by these conditions. To reach the minimal positive value of NPV the land lease should be higher than it is in reality and the official price should be lower. By land purchase we divided the companies on commercial companies and agricultural cooperatives. The indicators reach again negative results. The input indicators as capital expenses, cash incomes were modelled to reach the minimal positive values or to reach acceptable values of chosen indicators of efficiency evaluation.

Keywords: agricultural companies, land, land lease, land purchase

JEL Classification: Q15, Q24, M21

Rights:Open Access :: Creative Commons BY-NC-SA 4.0 International Licence
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