ASSESSMENT OF THE MARKET VALUE OF AGRICULTURAL LAND

The preservation of cultural heritage plays a key role in the development of society. To preserve cultural heritage, protection zones are established, which represent an encumbrance on land plots and, therefore, should be taken into account in the valuation process. Currently, there is a problem that mass (cadastral) and individual valuation methods do not necessarily include cultural heritage objects and their zones in cost coefficients. The absence of a mechanism to address their individual characteristics in the real estate valuation system has a significant impact on the value of real estate and leads to unjustifiably inflated market value and, as a consequence, to disputing the results of cadastral valuation. This article is devoted to determining the impact of protection zones of cultural heritage objects on the value of land intended for individual housing construction, using the example of the city of Orenburg. This article considers various methods of identifying patterns of the influence of zones with special conditions of use of the territory on the market value of land and substantiates the use of the method of comparative sales in the conditions of a low-active land market in Orenburg, a statistical analysis of market information, on the basis of which the type of activity of the real estate market in Orenburg was determined. The patterns of the calculation of corrections for the remoteness of the studied land plots from the objects of the transport and social infrastructure of Orenburg were revealed in this work as well. Through the method of paired sales within the framework of an individual assessment of the land plot intended for individual housing construction, the diminishing impact of the zones of protection of cultural heritage objects on the market value of land plots was revealed. This allows for conclusions to be drawn as to whether objects of cultural heritage have an impact on the value of real estate, and as a result, there is a need to modify the applied methods of mass and individual real estate valuation within the boundaries of historical settlements.

Hedonic modeling is commonly used in land and property value estimations in an attempt to identify the impact that various attributes have on the market value of that property. The purpose of this study is to examine the factors contributing to land value of agricultural, forest, and residential properties in Yamhill County, as part of the Spatial Ecosystem Services Analysis, Modeling, and Evaluation (SESAME, http://www.pdx.edu/ecosystem-services/) project. This paper discusses the process and preliminary results of the development of hedonic models that will be utilized for predicting land value changes under future land conversion scenarios. Applying the models to future scenarios will provide insight into the effect that land conversion will have on market value of land in Yamhill County, in order to elucidate one component of the total land value in the area. Numerous studies have performed hedonic modeling in order to provide greater understanding of the non-market ecosystem service values that are contributing to land values, and it is necessary to have baseline information on the value of environmental attributes in order to identify potential policy and planning activities that can preserve these values. Current methods for assessing the value of non-market ecosystem services are mostly in development stages, with few widely-accepted approaches. Utilizing hedonic modeling and other revealed preference techniques may provide valuable insight into the contribution of nonmarket goods and services, in order to ensure they are adequately accounted for in planning and management decisions. UNDERSTANDING THE DRIVERS OF LAND VALUE ii

The Land Value Zone (ZNT) is interpreted as an area that represents the same land value on plots of land in certain region, the boundaries of which are in accordance with its landuse. ZNT is determined based on the market value of land, making it useful for determining land service rates, determining land transaction rates in the community, and as a basis for determining the Taxable Sale Value (NJOP) for Land and Building Taxes (PBB). This research was conducted in the Tirawuta District and aimed to: (1) Determine the Land Value Zone; (2) Determine the potential for regional original revenue (PAD) based on the Land Value Zone Map. In this study, a Land Value Zone map was created using a sales comparison approach that overlaid with the Tirawuta District Administrative Map and the 2022 PBB Block Map, then compared with the land value based on NJOP. The results of this study are: (1) There are 98 Land Value Zones with the highest land value of Rp.303.000/m2 in the Rate-Rate Subdistrict. While the lowest land value is Rp.6.000/m2 in Roko-Roko Subdistrict with an average standard deviation of 4,5%; (2) The increase in regional income based on the comparison between transaction prices and NJOP value is 457%.

India has a new Land Acquisition Act LARR 2013. Its contents significantly differ from its earlier version of LAA 1894. But the Act continues to consider average market value of the adjacent lands as fair market value of the acquired plot and ignores the absence of active land market in India. Land plots in India are small and ownerships fragmented. The qualitative attributes of smaller land plots vary and hence their prices. Because of thin market, sales data are scanty and cannot be directly used for averaging. The new act has increased solatium to two to four times the average market value to obviate criticism of paying less to the landowners. This paper proposes to use rational method of computing for valuation of land to pay just compensation. This includes identification of attributes which affect agricultural land price and use the attribute differentials to modify the sale prices before averaging. Modified sale values then may be averaged to get the fair market value and used as a basis to pay just compensation.

Aim: The economic effect of an increase in the market value of land is a factor usually neglected in the assessment of land consolidation projects. However, it should be expected after procedures aimed at reorgan­izing the spatial structure of land plots. To fill the research gap in this area, a study was carried out to identify potential changes in land values as a result of completed land consolidation projects. Methods: Data from nine land consolidation projects carried out in Poland between 2007 and 2013 was used in addition to the results of an artificial neural network model developed within the framework of statistical analyses of agri­cultural real estate markets for municipalities where land consolidation projects were carried out. Results: Taking into account the increase in the market value of land as a result of consolidation, the balance of costs and benefits of planned or implemented projects significantly improved. The increase ranged from 1.2% to as much as 28.4%. Conclusions: The effect of increased land values would be a serious argument in assessing the profitability of implementing land consolidation projects. The increase in land value as an economic and social effect of land consolidation increases the probability of revitalizing local property markets and contributes to the wealth and creditworthiness of landowners. Exposing this effect can increase public interest and support for the implementation of consolidation projects, which is a very important step on the way to village renewal and activation.

This paper presents a study of the possibilities of using statistical indicators of the functioning of the agricultural sector of the region’s economy to estimate the value of agricultural land resources. The emerging market of agricultural land in the Russian Federation is characterized by a small number of annual transactions; therefore, the assessment of the value of land at the territorial and regional level based on the mechanisms of supply and demand is extremely difficult. To substantiate the tax base of land tax and (in some cases) the rent amount, the cadastral value of land plots is used, which is determined by the results of the state cadastral valuation of agricultural land. The methodology for cadastral valuation is debatable, since it does not provide for surveys of specific land plots; at the same time, it relies on indicators of soil quality. Therefore, its results may not be relevant, because they do not take into account important elements of economic fertility. The purpose of this study is to develop a methodological approach for estimating the value of land, which makes it possible to reflect the real economic potential of agricultural land in the region. This approach is based on the method of direct capitalization of the specific conditional net income calculated on the basis of statistical reports of agricultural producers. The methodology was tested on data from the Voronezh region, as a result of which the authors’ differentiation of municipal districts was formed according to the estimated value of agricultural land. According to the results of a comparative analysis, it is recommended to consider the issue of the advisability of changing the current methodology for assessing the value of agricultural land.

Purpose. The main purpose of the research is to substantiate the methodological approach of defuzzification and to define its peculiarities in the process of estimating the value of agricultural lands.
 Methodology / approach. The research purpose included the use of a set of appropriate methods. In particular, the fuzzy logic techniques formed the basis of the research. The system approach was used in order to determine the role of land resources in the enterprise potential and the corresponding spheres of their management. The analysis and synthesis methods were used in the process of definition of impact factors of land resources value. The cartographic method was used for the needs of graphical display of humus content in the land plots of the analyzed enterprise. The generalization method was used in the process of forming conclusions.
 Results. The article defines the peculiarities of defuzzification in the process of estimating the value of agricultural lands. The results provided the methodological basis for considering the qualitative metrics in the process of estimation as well as for granting the numerical interpretation for linguistic variables. The corresponding methodology was overviewed at the example of land plot size. The quantitative reference limits for “small”, “medium” and “large” land plots were defined. Research results made it possible to form the sequence of stages, which are to be undertaken, in order to provide numerical values for qualitative characteristics of agricultural lands. A decision tree was built for the needs of formation of management decisions. According to the data of researched enterprise, the dependence of the value of agricultural lands (for the needs of management accounting) on the size of the land plot and the humus content was determined.
 Originality / scientific novelty. The article improves the methodological approach to determining the value of agricultural lands as of an element of enterprise potential based on the use of fuzzy logic techniques, which, in contrast to existing approaches, allows taking into account both quantitative and qualitative factors in the process of estimating the value of land resources for the needs of their management. Applying the respective approach increases the level of accuracy, relevance, and adequacy to market realities of the results of estimating the value of agricultural lands for the needs of their management.
 Practical value / implications. The results of the research provided an opportunity to improve the quality and efficiency of the process of estimating the value of agricultural lands. The corresponding process is characterized by a high level of complexity and uncertainty due to the presence of a significant number of qualitative factors influencing the value of the land resources. The approach considered in the article makes it possible to take into account the influence of relevant qualitative factors by giving them numerical certainty through the use of fuzzy logic techniques. The proposed approach will provide an opportunity to increase the accuracy and relevance of estimating the value of land resources as of an element of enterprise potential for the making of corresponding managerial decisions. The proposed methodological approach was implemented with the use of data of agricultural enterprise, which made it possible to take into account linguistic variables (land plot size and chemical properties of the soil) when forming the managerial decisions about land plots. The decision tree was also formed, which serves as a means of supporting management decisions in the process of forming the value of agricultural lands.

The transaction price of a land property with commercial buildings depends on both its quantitative and qualitative attributes. Quantitative attributes include surface areas of plots of land and usable floor spaces of premises and buildings with various intended purposes, as well as values of rents. Qualitative attributes are represented by the global attributes of these properties.In the analysis of the land property market with commercial buildings, all pairs that relate a transaction price to individual attributes are considered. The market value prediction is based on multiple regression analysis for a two-dimensional random variable, represented by the price and the predetermined attribute. The final market value of the property being valued is calculated as the weighted average of the market values predicted for each attribute.This research paper presents the procedure for determining the market value of land with commercial buildings, which falls within the method of statistical analysis of the market. The derived formulas and substantively justified algorithms may be the basis for market analysis and estimation of the market value of such land. This procedure has been thoroughly verified using two practical numerical examples.

The Option Value of Vacant Land

This article proposes the method of economic evaluation of agricultural lands with linear objects and corresponding protection zones on the example of agricultural enterprise in the Arkadak district, Saratov region through the formation of land information system and evaluation of land plots using income and comparative approaches. As a result of the study, the land information system of the economy was compiled, the main indicators of the studied land plots were collected and the qualitative (taking into account current legislation regarding these zones) and the quantitative impact of zones with a special regime of land use on the value of agricultural land on the basis of income and comparative approaches was established in this work. Zones with a special regime of land use reduce market value of lands by changing the contour score of the land plot, which in turn creates complexity and increases cultivation costs. Within the framework of the comparative approach, it is proposed to apply adjustments for the configuration complexity. The proposed investigations will find application in assessing the market value of agricultural land plots with a special regime of land use.

Based on a perpetual rotation assumption, changes in selected variables will have effects on the even-aged timber clearcut age (rotation) that maximizes net present value using the Faustmann formula. Alternatively, one can assume that landowners project a postharvest change in land use with a land value equal to or exceeding today's Faustmann value and that this future land value is independent of their assumed values for variables like annual costs, annual revenues, stumpage prices, and income taxes. In that case, the impact of changes in the foregoing variables on optimal rotations may be substantially greater, and sometimes in the opposite direction, compared to the standard Faustmann approach. Moreover, a higher estimated postharvest land value can shorten the optimal rotation. With a loblolly pine yield function, these rotation differences are demonstrated, using the standard, perpetual Faustmann formula and a rotation-end land use change adaptation with a fixed projected land value. Appendixes include mathematical verifications. The different interpretations depend on whether one considers the Faustmann land value as the land market value in a general equilibrium sense, or whether one takes the future market value of land as given and performs sensitivity analyses of alternative scenarios. Policy implications are difficult to assess without more research on landowner behavior. FOR. SCI. 47(4):520–525.

The paper is concerned with the evaluation of the influence of the proximity of important protected location on the market value of land compared with the market value of land outside these locations. The database of values of land near or directly inside the locality classified as a protected natural site will be created in the paper, as well as the database of similar land outside such locations. The market values will be created from these databases. Then the paper will deal with the comparison of these values with regard to the location of the land. The comparison will be held between the locations of urban areas with similar population and similar proximity to larger urban areas. The paper will also describe the facilities of the compared urban areas and the services they provide. It will also mention the characteristics of particular protected natural sites, the means of their establishment and in brief also the level of environmental protection in these locations. The paper will be prepared under the legislation of the Czech Republic and will be concerned with the locations in the Czech Republic. The conclusion of the paper will show actual problems arising from the market values of land and evaluation of the land in protected sites.

The article is devoted to the analysis of the main approaches to estimating the value of land plots in the Russian Empire of the second half of the XIX – beginning of the XX century. Eastern Slavic historiography of the pre-revolutionary, Soviet and modern period. The objectives of the article are to determine the average market value of land in the provinces and compare it with the size of redemption payments, identify typical conditions for the implementation of the agrarian reform of 1861 for the Belarusian provinces, compare the approaches of representatives of Eastern Slavic historiography to the redemption operation and activities of the Peasant and Noble Land banks, analyze the factors that form value of land sold through the Peasant Land Bank. The article reflects the sharply negative assessments of the peasant reform of 1861 and the activities of the Peasant Land Bank in the pre-revolutionary and Soviet historiography. In this case, attention is drawn to the more favorable conditions for the redemption operation for the peasants of the Belarusian provinces, reducing the cost of peasant holdings and bringing them closer to the market value of land. Modern historiography stands in solidarity with the conclusions of the peasants’ repeated overpayment of the cost of their liberation, but connects this with the banking crisis, which predetermined the high cost of redemption. At the same time, modern researchers, on the basis of mathematical and economic methods, revised approaches to assessing the activities of the Peasant and Noble Land Banks, recognizing their role in mobilizing land ownership and solving the issue of peasant land shortages.

Land plays a central role in the explorations of value, embodying notions of use, exchange, common property and deeply held beliefs. However, with the discovery of natural resources, land values become even more dynamic and imbricated beyond pre-existing notions. What can be learnt about land values from resource extraction? Focusing on petro-geographies in Southwest Ghana and Tanzania’s Lindi-Mtwara, the current study calls attention to temporality and human–nonhuman relations within notions of land values and valuation processes. The research utilises a multi-method approach, grounding analysis in key expert interviews, policy documents, secondary research and empirical data on land use and development statistics. It shows that, in Southwest Ghana, calls for subsistence and food security highlight the deepening linkages between land’s caloric use values and nature’s intrinsic values. Here, food security is not easily subsumed within instrumental use values but rather interlinked within the complex ecology of (un)polluted nature. In Lindi-Mtwara, calls for intergenerational sustenance re-valuate land’s exchange value as a flow of resources rather than a stock to be paid off. Here, social histories and future capabilities become key considerations in deliberations over the market value of lands. The research thus highlights the interdependencies, social relations and temporalities of value triggered by resource extraction, the neglect of which often leads to conflict and loss.

Purpose of research. Determine the investment income of the entrepreneur for the land. To substantiate the market value of the developed land plot with the operating business for tax purposes. Materials and methods . The basis of the paper is the norms of the law in appraisal activity; the results of cadastral evaluation of real estate objects in Russian settlements; the method of comparative analysis of factors determining the market and cadastral value of real estate objects. Results. Methodological bases of calculation of market and cadastral value of built-up land plots of settlements as capitalized rent of non- reproducible factors of market value of a single real estate object are formulated. It is shown that in the theory and practice of measurement of market and cadastral value of the built-up parcels of land of settlements of Russia article 3 of the law 135-Federal Law of 29.07.1998 is violated, in consequence of what, the market and cadastral value of capital construction in 2–5 times is overestimated, and the market and cadastral value of parcels of land in 2–10 times is underestimated. The formula of calculation of investment profit of the entrepreneur for the land plot is offered. Conclusion. Regardless of the method (technology) of property valuation, cadastral value of built-up land in a settlement should be determined as the difference between the market value of a single property and the market value of its improvements, using the built-up land as analogs. That is, excluding from the value of a single property the value of improvements of the land, we receive the market value of the built-up land, as “not built-up” clause 20, Federal Valuation Standard №7.