An Empirical Investigation of Agricultural Land Price Determinants in District Charsadda

In 2000, to efficiently implement land-use policies, the Taiwanese government amended the Agricultural Development Act by easing restrictions on agricultural land purchases. As a result of increasing land development and investment needs, agricultural land prices have surged. This study aims to examine whether agricultural land prices in Pingtung County are affected by land control policy measures, the pressure of agricultural land conversion and the degree of urbanization. A multilevel analysis approach was used to analyze land price differences in townships in Pingtung County. The estimation results derived from the null model indicated significant differences between the mean land price in each administrative division. Specifically, the ratio of agricultural land prices affected by differences in Level 2 township-related factors was 21.8%, while the ratio of those affected by differences in Level 1 land-related factors was 78.2%. An empirical intercepts-and-slopes-as-outcomes regression model demonstrated that Level 2 township-related factors, such as the pressure of agricultural land conversion and the degree of urbanization, had cross-level, direct and positive impacts on agricultural land prices; while Level 1 land-related factors, such as lot size control measures on farmhouse construction and land-use zoning, had positive and significant impacts on agricultural land prices.

land is the most fundamental material of production, and is man's indispensable living condition for existence. Agricultural land prices reflect not only the uses of agricultural land, but the potential uses as well. This paper reviews the valuation on agricultural land prices in western developed countries and the development courses of agricultural land appraisal, especially valuation on agricultural land standard prices in China. The problems in the valuation at present are analyzed. According to the thinking of first gradating and then evaluating, Agriculture Land Gradation and Evaluation Information System (ALGEIS) based on Geographical Information Systems (GIS) is developed. As a case study, the proposed method is applied to value agricultural land standard prices in Yunan County, Guangdong Province, China. The case study shows that the proposed method is a practical and satisfactory one. The applications of achievements of valuation on agricultural land prices are discussed, which effectively promote the reform and development of land resources administration. Developing agriculture land gradation and evaluation information system based on GIS, can satisfy spatial, dynamic, quantitive and comprehensive requests in valuation on agriculture land.

This study investigates determinants for agricultural land prices in Peshawar district of Pakistan. A linear hedonic model is used to analyze data set on sale prices of agricultural land parcels and their agricultural, location and environmental characteristics. Results show that agricultural land price is affected positively by soil fertility, amount of irrigation water and closeness to agricultural market. Among location characteristics, distance to city, distance to main road and distance to nearest houses have significant effects on land prices. Agricultural land located closer to city, main road or houses has significantly higher price compared to a more distant land. Environmental degradation such as polluted freshwater bodies has negative effect on nearby agricultural land prices. Based on these findings and review of relevant literature, the study recommends government intervention for conservation of agricultural land, investment in developing agricultural infrastructure such as dams, irrigation canals, roads, transport, agricultural markets, etc., and provision of subsidized fertilizers and other inputs to increase farmers’ returns and change their perception to favour using their land for agriculture.

This paper includes the concepts of land rent from the standpoint of modern economics and accounts for the contributing factors in the formation of the agricultural land price during the pre-war and the post-war periods. It can be said the agricultural land price in the later Taisho period was conditioned by farm rent and as far as the pure farming region is concerned, the agricultural land price in the post-war period is also explained considerably by net returns per 10 ares of land, which is capitalized by an 8 percent interest rate. Furthermore, the increase in agricultural land price, based on the premises of constant return to scale and the supported price of farm products, has demonstrated that the rise in the agricultural land price is sufficiently explained by technological progress in rice production. Though various factors are considered important in the contribution to the formation of the agricultural land price in this paper the main emphasis is based upon the fact that the interior factors of agriculture considerably elucidate its formation throughout the pre-war and the post-war period. This is especially applicable to the agricultural land price in pure farming regions. I. LAND RENT In agriculture, land is the most important production factor. There are different viewpoints among Marxian, classical, and modern economists. Among Marxian economics and classical economics, land rent is considered to be derived from surplus, whereas the generally accepted idea among modern economists is that it is determined by marginal productivity of land. However, modern economists do not necessarily have a unified viewpoint on land rent. It is true that certain famous modern economists maintain that the essence of land rent is surplus. For example, Marshall (1922) is one among them. According to his opinion that the essence of land rent was surplus and he introduced the concept of quasi-rent which could be extensively applied to fixed capital exclusive of land. Likewise, Robinson (1964) asserted that the essence of the concept of land rent was surplus. Consequently surplus had to exceed the minimum income which was necessary for the operation of production factors and was obtained by a particular part of the production factors. However, these two different views on land rent among modern economists do not necessarily differ from each other completely, since the marginal productivity of land and surplus will be, in essence, equal as long as land is looked

This study utilized data from 300 prefecture-level cities in China, spanning from 2000 to 2020, and employed a difference-in-differences (DID) model to investigate the influence of land development rights on agricultural land prices, alongside the mechanisms underlying this relationship. The primary aim of this research was to analyze the manner in which land development rights affect agricultural land prices through the implementation of policies and market forces. Via empirical analysis, the study elucidated the effects of land development rights on agricultural land prices within China. The key findings include the following: (1) Land development rights positively influence the increase in agricultural land prices. (2) Land development rights significantly narrow the urban–rural income disparity at municipal and county levels, which in turn impacts agricultural land prices. (3) The effect of land development rights on agricultural land prices is negatively moderated by regional economic growth. (4) While land development rights significantly enhance the prices of arable land, their impact on sectors such as agriculture, forestry, animal husbandry, fishing, and food processing remains minimal. (5) In northern regions and economically underdeveloped areas, land development rights substantially boost agricultural land prices, underscoring their role in fostering local economic development and enhancing land use efficiency.

PurposeThis study analyses agricultural land price dynamics in order to better understand price development and to improve forecast accuracy. Understanding the evolution of agricultural land prices is important when considering sound investment decisions.Design/methodology/approachThis study applies threshold autoregression to model agricultural land prices. The data includes quarterly observations on Finnish agricultural land prices.FindingsThe study shows that Finnish agricultural land prices exhibit regime-switching behaviour when using past changes in prices as a threshold variable. The threshold autoregressive model not only fits the data better but also improves the accuracy of price forecasts compared to the linear autoregressive model.Originality/valueThe results show that a sharp fall in agricultural land prices temporarily changes the regular development of prices. This information significantly improves the accuracy of price predictions.

Valuation of ecosystem services from rural landscapes using agricultural land prices

Increasing tourist activities in Batu City makes agricultural land conversion unavoidable. This research aims to determining the lost economic value of food commodities due to converted agricultural land area and labor shift. The conversion area of agricultural land in all areas can be identified through Landsat image 8 ETM+ in 2017 and 2021. An overlay analysis using ArcGIS 10.2 software with 7 variables was then utilized to determine land capability and land suitability. Then, it was combined with the survey results of 334 land price points to determine the distribution of agricultural land prices in Batu City by using Kriging interpolation analysis. The results of the research show that the agricultural land area has decreased in the past 4 years by 169.96 Ha, with a lost economic value of approximately 5 billion Indonesian rupiah. The agricultural land price in Batu City is divided into 4 classifications. The results indicate that the agricultural land price is high, so it accelerates the agricultural land conversion. Therefore, the government should pay close attention to land conversion.

Pollution in Minh Khai, Van Lam district is seriously contributed by plastic recycling plants. Therefore, this study evaluated the impact of plastic recycling pollution on agricultural land prices in Minh Khai, Van Lam district. Hedonic price analysis was employed in analyzing the data being collected. The results show that crop yield and quality as well as agricultural land prices in the area tend to decrease due to the impact of pollution from plastic recycling. The analysis also showed land prices are positively related to crop yields, soil quality and land size while distance to the highway and quality of the irrigation water are negatively related. Based on the hedonic price method, the research shows that the price of agricultural land increases by 0.97 VND/m2 (USD 0.042 per 1000m2) when away from the plastic recycling area. It is estimated that the value of agricultural land in the district damaged by pollution is about 79 billion VND (3.4 million USD). Therefore, local authorities should implement zoning of production into concentrated areas. Hence, it is possible to invest in pollution treatment and reduce negative impacts on the external environment.

This study examines the effects of urban development pressure on agricultural land prices in Korea. It investigates the determinants of agricultural land prices, focusing particularly on urban planning variables on agricultural land use. Since agricultural land price is in general closely related to the spatial characteristics of an area, it adopts a mixed GWR (geographically weighted regression) model in order to identify local and global effects of independent variables on agricultural property values. Results of a mixed GWR model prove to be superior to those of a global model (OLS) and standard spatial econometrics models (SAR, SEM, SAC) in terms of model fits and stability of the parameters estimated. The model notes that spatial dependency and heterogeneity are particularly important in examining the variations of agricultural land price. The empirical results provide strong evidences that such factors as man-made and natural features are closely relevant in determining agricultural property values.

Agricultural prices play greater role in living Economics. Since many decades’ farmers faced declining agricultural prices and low prices in developing countries. Therefore, in these countries agricultural price policies are under closer appraisal. Government and policy makers worry about inflation. Economic precision is required in determining prices. This understanding led to conception of the study. The specific objectives are to review various agricultural price theories, research evidences and construct the theory of agricultural price bubble and crash and their effect on macro economy and suggest measures to improve. The study reviews various agricultural price theories, concepts, policies, research gaps and do meta-analysis and formulated the theory of Agricultural prices bubble and price crash. Since 1950, many development economists and practitioners prophesy in developing countries is that low agricultural commodities prices discourage poverty alleviation. Many countries are unable to make successful pricing policies due to there is not enough operative methodological and theoretical support for decision-making. According to the economic theory of cooperativism, the entities come closer to the pecking order theory. Unexpected changes and changes in regulations can have significant impact on the profitability of farming activities. “Demand channel" is the crucial factor in elucidation of commodity price growth. Future prices moments in agriculture have fat-tailed distributions and display quick and unpredicted price jumps. World Trade Organization study highlights the importance of strengthening multilateral disciplines on both import and export trade interventions to food price fluctuations to reduce beggar-thy-neighbor unilateral trade policy. The theory of NAFTA regionalism did not lead to regionalization and not increasing share of intraregional international trade. In EU countries land rents in modern agriculture causing upward trend in agricultural land prices. Information friction, agricultural supports, agricultural price & trade policies, agricultural price transmission are responsible price fluctuations. In economic theory, asymmetric price transmission has been the subject of considerable attention in agricultural gaps. Selection of forecasting models are based on chaos theory. Chaos in agricultural wholesale price data provides a good theoretical basis for selecting forecasting models. This theory can be applied to agricultural prices forecasting. Novelties in agricultural products fluctuations research offer scientific basis in planning of agricultural production.

This research deals with the problem of agricultural land market efficiency using the spatial market integration concept as well as the present value (PV) model. Empirically, it aims to test the convergence of agricultural land prices across Polish provinces. In order to check the law of one price (LOP), good-quality, medium-quality and bad-quality land sales markets are examined separately. Furthermore, this study is complemented by an analysis of the drivers behind agricultural land price convergence. The main method of testing price convergence is the log t regression. The latter was performed in two configurations, i.e., based on trend components of time series extracted using the Hodrick–Prescott filter and the Hamilton filter. Additionally, traditional β- and σ-convergence tests were applied. The obtained results indicated that agricultural land prices tend to converge in relative terms, which means that the provinces share a common long-run growth path. This finding and estimates of traditional convergence tests prove the increasing integration in the agricultural land market in Poland. There is no evidence, however, to support the conclusion that the absolute version of the long-run LOP holds. Moreover, using dynamic fixed effects models, it was identified that for good-, medium- and bad-quality land prices almost the same drivers of convergence apply. The only differences concern the strength of the influence of independent variables on prices of farmland of various types. Additionally, bad-quality land prices are the only ones which are affected by livestock density. Furthermore, estimates of the present value model finally confirmed that the agricultural land sales market in Poland cannot be considered as efficient.

Price volatility of agricultural land in Poland in the context of the European Union

Long before Poland̛s accession to the European Union, the prices of agricultural land were of interest not only to potential investors in the agri-food sector, but also to speculators, whom agroeconomists were tasked with monitoring. The aim of this study was to assess changes in agricultural land prices in Poland compared to the European Union and to identify variables that strongly depend on the average level of prices of agricultural land in the European Union. This article also demonstrates that in EU countries there is a significant correlation between agricultural land prices and the value of direct payments and the value of gross domestic product per capita.

Land price studies typically employ hedonic analysis to identify the impact of land characteristics on price. Owing to the spatial fixity of land, however, the question of possible spatial dependence in agricultural land prices arises. The presence of spatial dependence in agricultural land prices can have serious consequences for the hedonic model analysis. Ignoring spatial autocorrelation can lead to biased estimates in land price hedonic models. We propose using a flexible quantile regression-based estimation of the spatial lag hedonic model allowing for varying effects of the characteristics and, more importantly, varying degrees of spatial autocorrelation. In applying this approach to a sample of agricultural land sales in Northern Ireland we find that the market effectively consists of two relatively separate segments. The larger of these two segments conforms to the conventional hedonic model with no spatial lag dependence, while the smaller, much thinner market segment exhibits considerable spatial lag dependence. Un modèle hédonique à régression quantile spatiale des prix des terrains agricoles Résumé Les études sur le prix des terrains font généralement usage d'une analyse hédonique pour identifier l'impact des caractéristiques des terrains sur le prix. Toutefois, du fait de la fixité spatiale des terrains, la question d'une éventuelle dépendance spatiale sur la valeur des terrains agricoles se pose. L'existence d'une dépendance spatiale dans le prix des terrains agricoles peut avoir des conséquences importantes sur l'analyse du modèle hédonique. En ignorant cette corrélation sérielle, on s'expose au risque d'évaluations biaisées des modèles hédoniques du prix des terrains. Nous proposons l'emploi d'une estimation à base de régression flexible du modèle hédonique à décalage spatial, tenant compte de différents effets des caractéristiques, et surtout de différents degrés de corrélations sérielles spatiales. En appliquant ce principe à un échantillon de ventes de terrains agricoles en Irlande du Nord, nous découvrons que le marché se compose de deux segments relativement distincts. Le plus important de ces deux segments est conforme au modèle hédonique traditionnel, sans dépendance du décalage spatial, tandis que le deuxième segment du marché, plus petit et beaucoup plus étroit, présente une dépendance considérable du décalage spatial. Un modelo hedónico de regresión cuantil espacial de los precios del terreno agrícola Resumen Típicamente, los estudios del precio de la tierra emplean un análisis hedónico para identificar el impacto de las características de la tierra sobre el precio. No obstante, debido a la fijeza espacial de la tierra, surge la cuestión de una posible dependencia espacial en los precios del terreno agrícola. La presencia de dependencia espacial en los precios del terreno agrícola puede tener consecuencias graves para el modelo de análisis hedónico. Ignorar la autocorrelación espacial puede conducir a estimados parciales en los modelos hedónicos del precio de la tierra. Proponemos el uso de una valoración basada en una regresión cuantil flexible del modelo hedónico del lapso espacial que tenga en cuenta los diversos efectos de las características y, particularmente, los diversos grados de autocorrelación espacial. Al aplicar este planteamiento a una muestra de ventas de terreno agrícola en Irlanda del Norte, descubrimos que el mercado consiste efectivamente de dos segmento relativamente separados. El más grande de estos dos segmentos se ajusta al modelo hedónico convencional sin dependencia del lapso espacial, mientras que el segmento más pequeño, y mucho más fino, muestra una dependencia considerable del lapso espacial.