Abstract

In the theory and practice of valuation, it is commonly accepted that the key feature determining the value of agricultural land is its location, both general and in a specific part (zone) of a village. The model approach used in the present study can provide the answer to the question of how to maximize the value of agricultural land as part of a conducted arrangement, agricultural works. The study used data on the market sale of agricultural parcels in 10 Polish municipalities. Each parcel was described using a set of features (parameters) that were key to its value and entered into a database. Using the database, two statistical models were built: a multiple regression analysis model (MRA) and an artificial neural network model (ANN). The studies conducted have shown that changes in such features as surface area, shape, and access to a public road were accompanied by significant changes in the market values of parcels. Another important observation was that potential decreases in the value of agricultural parcels as a result of changes in their surface areas were offset (where it was reasonable) by the elimination of their excessive elongation and providing them with an access to a public road. Based on the findings, it has been concluded that change in land value should be considered one of the effects of executed land consolidation projects (LCP), during which the parameters of agricultural parcels are subject to the biggest changes.

Highlights

  • Areas used for agricultural purposes play a key socio-economic and cultural role in the development of virtually any country

  • The stages of the computation process determined the values predicted by the mathematical form of the multiple regression analysis model (MRA) in different configurations of parcel elongations and access to a road

  • The regression model constructed in accordance with the above-described methodolcriterion for seeking the minimum of the error function and the sum of squares (SoS) as ogy showed a satisfactory explanatory capacity of prices

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Summary

Introduction

Areas used for agricultural purposes play a key socio-economic and cultural role in the development of virtually any country. These factors have a negative impact on the incomes and living conditions of the population, increasing negative migration trends from rural areas to cities [10] and leading over time to an increasing phenomenon of permanent abandonment of land cultivation [11,12,13]. Both these phenomena are negative and hard to reverse. Land acquires a real value when it is sold or used

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