Technology diffusion, farm size structure and regional land competition in dynamic partial equilibrium

The methodological challenge addressed here is modelling multi-regional development of agricultural production and structural change, including land competition, in a dynamic partial equilibrium setting. The model applied in this study is a dynamic recursive model simulating the development of the agricultural investments and markets annually from 1995 up to 2020. Results show that land prices play a role when animal production increases in most competitive regions and gradually decreases in less productive regions. The framework can be applied when analysing how various new techniques, practices and regulations for land use affect regional production structures.