Farm growth and land concentration

Structural change in agriculture is characterized by the interdependency of farms’ growth decisions due to scarcity agricultural land . This paper adds sparse empirical literature on relation between market concentration and farm size changes, considering different definitions relevant market. Using data from Integrated Administrative Control System (IACS) 2005 until 2017 for Brandenburg, Germany, we find that about half transactions occur beyond municipality borders. emphasizes importance carefully defining The descriptive analysis shows although rates, average, did not increase over time, spatial differences are present. In econometric analysis, apply a two-stage model analyze how competition impacts probability relative level expansion. For farms remained active 2017, negative growth. Our conjecture higher inequality distribution fosters expansion large was confirmed.