50
D. Kirschke et al.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004
2007
2010
2013
2016
2019
year
cereals without wheat
wheat
silo maize
rape seed and turnip rape
root crop
pulses
other growing crops
fallow land
Fig. 3.7 Use of arable land in Germany, 2004–2019, in % (Source Own compilation according to
Statistisches Bundesamt (various years), Fachserie 3)
3.4 New Drivers
Recent agricultural land use trends in Germany indicate that land use conflicts are
increasing. An obvious indication for this development is rising land prices pointing
to increased demand for land both within and outside agriculture. The traditional
conflict between agricultural production and nature and natural resource protection
did not diminish, but rather deteriorate. New trends in the agricultural land use
structure both reflect changing demand for land within the agricultural sector and
seem to underline the conflict between agriculture and environment. Interestingly,
some of these trends (permanent grassland, pulses) seem to have been reversed in
recent years. What are the new drivers behind these developments?
3.4.1 Market Forces
In a market economy agricultural production and agricultural land use basically
depend on prices. The relationship between commodity and factor prices, and
land prices in particular, has been a well-known and analyzed topic in agricultural
economics. Since land supply is fairly inelastic, changes in land demand have a major
impact on land prices. High commodity prices translate into higher demand for land
and other factors and, thus, result in higher land prices and intensification.
Figure 3.8 illustrates the theoretical aspects showing how an increased commodity
price e.g. for wheat changes land prices and affects the nitrogen market. On both factor
markets, the higher commodity price shifts the marginal value product function to
the right showing the increased demand for production factors. For simplicity, land
D. Kirschke et al.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004
2007
2010
2013
2016
2019
year
cereals without wheat
wheat
silo maize
rape seed and turnip rape
root crop
pulses
other growing crops
fallow land
Fig. 3.7 Use of arable land in Germany, 2004–2019, in % (Source Own compilation according to
Statistisches Bundesamt (various years), Fachserie 3)
3.4 New Drivers
Recent agricultural land use trends in Germany indicate that land use conflicts are
increasing. An obvious indication for this development is rising land prices pointing
to increased demand for land both within and outside agriculture. The traditional
conflict between agricultural production and nature and natural resource protection
did not diminish, but rather deteriorate. New trends in the agricultural land use
structure both reflect changing demand for land within the agricultural sector and
seem to underline the conflict between agriculture and environment. Interestingly,
some of these trends (permanent grassland, pulses) seem to have been reversed in
recent years. What are the new drivers behind these developments?
3.4.1 Market Forces
In a market economy agricultural production and agricultural land use basically
depend on prices. The relationship between commodity and factor prices, and
land prices in particular, has been a well-known and analyzed topic in agricultural
economics. Since land supply is fairly inelastic, changes in land demand have a major
impact on land prices. High commodity prices translate into higher demand for land
and other factors and, thus, result in higher land prices and intensification.
Figure 3.8 illustrates the theoretical aspects showing how an increased commodity
price e.g. for wheat changes land prices and affects the nitrogen market. On both factor
markets, the higher commodity price shifts the marginal value product function to
the right showing the increased demand for production factors. For simplicity, land