Abstract
The gap between the average market and agricultural value of South African land showed a steady decline since 1984. The decline is attributable to the withdrawal of some of the major policy support services to the farming community and inflationary conditions, which had a negative influence on both sellers and buyers. The negative effect of the terms of trade was, however, partially countered by an annual growth in productivity of 4, 63% since 1983. This had a positive effect on agricultural values, thus closing the gap between the market and agricultural value of land.
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