Farmland Values Research Articles

Management on Transfer Pricing of Farmland Based on the Supply–Demand Mismatches for Multifunction: A Case Study from China

Realizing the multifunctional value of farmland is essential for regulating the pricing of farmland transfers and stabilizing the rural land market. However, in China, the mismatch between supply and demand leads to improper resource allocation, weakens the explicit value of farmland, and causes unreasonable transfer pricing mechanisms that threaten agricultural production and food security. This study develops an analytical framework to examine the relationship between farmland multifunction and transfer pricing from a supply–demand perspective. An evaluation index system is constructed, considering the physical, value, and material quantities. This study uses the matching index method and bivariate spatial autocorrelation to analyze the supply–demand match of farmland multifunction from 2014 to 2021 and its relationship with transfer prices. Additionally, management methods and strategies for dynamic zoning-based pricing under multifunctional matching trade-offs are proposed. The results show that: (1) There is significant heterogeneity in the supply and demand matching degree of different farmland functions in both space and time. The production and ecological functions of farmland are oversupplied, while the living functions are undersupplied. (2) Different spatial autocorrelation relationships exist between the degree of supply and demand matching of farmland functions and farmland transfer prices. Specifically, the supply and demand matching degrees of the production and living functions show a significant negative spatial correlation with farmland transfer prices. In contrast, the ecological function shows a significant positive spatial correlation with farmland transfer prices, which are continuously strengthening over time. (3) Based on the supply and demand matching situation of different farmland functions and the spatial autocorrelation of farmland transfer prices, nine types of regions are delineated for farmland functions. Among them, the surplus-coordinated development areas have the most cities, accounting for about 40%, with a wide distribution range. This study proposes zoning-based pricing instruments and management strategies. This research provides valuable insights for developing countries seeking to alleviate conflicts in multifunctional land use, enhance the sustainable protection of land resources, and improve land resource assessment frameworks.

Revealing urban residents’ intention to pay for the greening of farmland in the urban fringe by extending the theory of planned behavior: Insights from payment for ecosystem services

The greening of farmland in the urban fringe improves the resilience of urban ecosystem and brings more abundant ecosystem services to urban residents. From the perspective of payment for ecosystem services, this study explored urban residents’ intention to pay for the improved ecosystem by extending the theory of planned behavior. The main findings are as follows. First, 76% of urban residents had a relatively strong payment intention. Second, moral obligation was the foremost factor that affects intention, which highlights the importance of individuals’ intrinsic sense of responsibility and social altruism to mould “greening action”. Third, the positive effect of behavioral attitude was subsequently highlighted, therefore, the government should shape decision-makers’ positive attitudes by propagandizing the value of green farmland. Fourth, both ecosystem service perception and nature affinity had a significant and positive impact on payment intention, and further, ecosystem service perception mediated the impact of nature affinity on intention. This observation provides policymakers with enlightenment that measures to enhance urban residents’ nature affinity, are also effective in improving ecosystem service perception. Moreover, the average payment level of urban residents was 174.7CNY per year. If payment intention can be catalyzed into actual payment behavior, it expected to greatly contribute to the financing of greening action. These results can help policymakers better understand the sustainable path of farmland greening from the perspective of payment for ecosystem services.

Analysis of Heavy Metal Pollution Evaluation and Correlation of Farmland Soil and Vegetables in Zhaotong City

A farmland area in Zhaotong City was taken as the research object， and the method of point-to-point collaborative sampling was used to collect farmland soil and vegetables in Zhaotong and test the content of six heavy metals， namely As， Pb， Cu， Zn， Cd， and Cr. The geo-accumulation index and potential ecological risk index were used to evaluate the heavy metal pollution of soil. The health risk model was used to evaluate the risk to the human body imposed by vegetables. The results showed that Cu， Zn， Pb， Cd， and Cr pollution existed in the research area. Compared with the risk screening value of farmland， the over-standard rates were 34.35%， 6.87%， 2.29%， 80.15%， and 6.11%， respectively； Pb， Cd， and Cr were found in vegetables. Compared with the pollutant limit in food， the over-standard rates were 6.87%， 15.27%， and 36.64%， respectively. According to the soil pollution evaluation， Cd in the soil showed a strong ecological risk， and other heavy metals in the soil showed a mild ecological risk. The human health risk evaluation model showed that both non-carcinogenic risk and carcinogenic risk were out of the acceptable range and had a greater influence on children. Correlation analysis showed that As in the soil had an antagonistic effect on Cu and Zn absorption by vegetables， whereas Cr in the soil could promote Cu and Zn absorption by vegetables.

ЗЕМЕЛЬНЫЕ ОТНОШЕНИЯ В СУБЪЕКТАХ ПОВОЛЖСКОГО ЭКОНОМИЧЕСКОГО РАЙОНА

The article is devoted to the multifaceted and very different land relations of the Volga Economic Region. The cost changes in the lease, purchase and sale segments based on the results of land auctions using the grouping method according to different criteria: land rights, land area and lease term are presented and analyzed. Differences and patterns have been established between subjects in the field of land policy, in the system of land use organization, management, in particular with regard to the disposal of land resources. Proposals have been made to increase the lease terms in order to preserve soil fertility, the value of farmland, prevent land and soil degradation, and stimulate long-term, stable economic relations in the agricultural sector of production. Special attention is paid to the role and impact of industrial and economic relations on the sustainable investment development of agribusiness in rural areas.

The Impact of Large-scale Solar Development on Farmland Values: Evidence from New York State

The Impact of Large-scale Solar Development on Farmland Values: Evidence from New York State

MITIGATING SPATIAL DISPROPORTIONS IN AGRICULTURE THROUGH REVEALING COMPETITIVE ADVANTAGES

Spatial development of agriculture has always been among the core agendas of food security. Amid the increased volatility of food markets globally, low diversification of agricultural production depresses competitiveness and flexibility of farmers. To narrow spatial development gaps, the study presents the five-stage approach to revealing territory-specific competitive advantages in producing nine categories of agricultural products. The data is collected across all administrative territories of Russia categorized according to the cadastral value of farmland. The revealed mismatches between the parameters of food self-sufficiency, productivity of crops, and profitability of farmers show that agricultural policy should aim at stimulating production of competitive products with due account to the spatial features of agriculture to ensure the highest return per unit of inputs along with adequate accessibility of staples for consumers. Determining proportions in which agricultural facilities should be allocated across territories would allow governments to tailor the resource provision programs, including subsidies to territories, agricultural sectors, and individual producers.

Disamenity or premium: Do electricity transmission lines affect farmland values and housing prices differently?

A substantial increase in electricity demand has triggered a rising investment in energy infrastructure in the US over the last decade. This paper examines the capitalization effects of electricity transmission lines (TMLs) on nearby farmland values and housing prices in the Midwest from 2015 to 2019, based on 16,026 parcel-level farmland sales data from FarmlandFinder and 1,905,280 housing transaction data from the Zillow Transaction and Assessment Dataset database. Our estimation results reaffirm the disamenity effects of TMLs on housing property values and find that the disamenity effects are larger on houses in urban areas than in rural areas. Nearby TMLs generate premiums for surrounding farmland, which contrasts with the disamenity evidence due to aesthetics (either visual or audible) in the literature. We further show that farmland parcels within 0–2 km of TMLs in high-wind areas are approximately 3.10% more expensive than comparable parcels in low-wind areas. Our paper provides novel and contrarian evidence on the effects of TMLs on property values amid rising investment in energy infrastructure.

USDA Reports on Land Values and County-Level Cash Rent Estimates Across Nebraska in 2023

Survey findings from the USDA-National Agricultural Statistics Services (USDA-NASS) estimated that Nebraska farm real estate value, including all agricultural land and buildings, in 2023 increased by 13.1% to an average of $4,240 per acre (Figure 1). The year-over-year increases mark an increase of $490 for this annual period (USDA-NASS 2023a). Kansas and New Jersey lead the nation for the highest rates of increase in the market value of farmland at 16.3% and 14.9% for market value averages of $3,060 and $17,700 per acre. Nebraska marked the fifth-highest percentage increase for rising farm real estate when ranked against the other states.

Ways to improve land assessment methods in Azerbaijan

Motives: The article examines various approaches to improving the assessment of agricultural land in Azerbaijan. The quality, potential productivity, and normative price (value in monetary terms) of farmland need to be determined to increase production and competitiveness of agricultural products, to establish favourable land relations that meet modern requirements, and to promote efficient land use. The existing methods of assessing the quality and economic value of farmland for the needs of the land cadastre and determining the normative prices of land do not fully correspond to reality. Different and often contradictory approaches to land assessment have been proposed.Aim: The aim of this study was to optimize the methods of assessing the quality and economic value of agricultural land, determining the normative prices of land, and evaluating potential land productivity in view of modern requirements.Results: Improvements in land valuation will promote reliable assessments of agricultural development and the establishment of efficient farming systems; they will improve agricultural land-use efficiency and reliable determination of normative prices in market transactions involving agricultural property. These methods can be widely used to plan agricultural production, evaluate the operations of various types of farms, improve remuneration policies in the farming sector, determine the optimal scope of farming operations in view of natural conditions and economic factors, and resolve other issues to promote the development of agricultural production.

The economic impact of biofuel policy on the agricultural sector in the Great Plains region, 1997–2017

Abstract Global biofuel production has increased over tenfold since 2000 and numerous biofuel production plants have been built in the Great Plains region. We estimate the impact of biofuel plants on the agricultural economy with county-level data on the number of farm operators, net farm income (NFI), and agricultural land values during 1997–2017 for 798 counties in twelve Great Plains states. We find that biofuel production facilities have a small negative association with the number of farm operators, but positive associations with NFI and farmland values in the county where the biofuel plant is located and neighboring (adjacent) counties. Sustained positive associations of biofuel production with farm income and land values are likely to depend on the continuation of national and state government programs of ethanol blend mandates and tax credits. Diminished government bioenergy support could lead to declining farm income and land values in areas near plants.

농지 경매 매각가율 결정요인 연구

In this study, an empirical analysis was conducted using a hedonic pricing model to determine the factors affecting the farmland auction sales price ratio in Hwaseong-City. The results show that the variables that have a positive(+) effect are road interface(others), successful bid price, number of bidders, and the variables that have a negative(-) effect are number of failed bids, planned management area(etc.), farm area were found to have an effect. The size of the influence on the farmland sales price ratio is in the order of the number of failed bids, road interface(others), planning management(etc.), farmland area, successful bid price, and number of bidders. The contributions of this study are that the farmland variables that form the value of farmland have been used to identify the factors that affect the farmland auction sales price ratio by utilizing the cases of farmland auctions that have won farmland auctions in the court auction, centering on Hwaseong-City. By dividing and analyzing the data, it provided reliable data for decision-making to the participants in the farmland auction.

The impact of climate change on agriculture: A repeat-Ricardian analysis

Ricardian analyses of farmland values have become a cornerstone of the literature valuing the impacts of climate change on agriculture. However, concerns about the lack of a formal econometric strategy to deal with omitted farmland characteristics have raised doubts about the identification of such impacts. This paper proposes an original method for estimating Ricardian models with plot fixed effects to control for confounding omitted variables. Specifically, we use plot-level repeat-sales French data from 1996 to 2019 to investigate how differences in farmland prices between two sale dates are explained by differences in climate evolutions. We show that our repeat-Ricardian estimates suggest greater benefits of climate change than those found with standard Ricardian analyses. In particular, our repeat-Ricardian estimates indicate that warmer summers benefit French agriculture, in complete opposition to our pooled Ricardian estimates or to the remainder of the literature. Our repeat-Ricardian results are robust to several specifications, climate length-definitions and sub-samples. We provide elements suggesting that the repeat-Ricardian analysis is better able to capture crop-switching towards high-value crops requiring particular soil conditions (e.g. vineyards). Our repeat-Ricardian analysis also indicates greater benefits of climate change compared to those estimated with short-term weather-based approaches, shedding new lights on previous inconsistent findings from the literature.

Climate-Smart Conservation Agriculture, Farm Values and Tenure Security: Implications for Climate Change Adaptation and Mitigation in the Congo Basin

Background and Research Aims: Agriculture through deforestation is an important threat to biodiversity conservation in the Congo Basin’s tropical forest. The policy challenge is not only to promote adaptation to perceived climate change but also to promote forest conservation. The aim of this study is to provide empirical evidence on the impact of farm-level investments in climate-smart agricultural practices related to conservation agriculture in some Congo Basin countries. The hypothesis is that property rights to land and trees play a fundamental role in governing the patterns of investment, forestland management for conservation, as well as in the profitability of agriculture. Methods: A Simulated Maximum Likelihood Estimation using a Mixed Logit model is used to test farmers’ choice of agricultural system and a farmland value model for each agricultural system which includes determinants of tenure or property rights, climate, soils, and socioeconomic variables such as education and gender. The data was collected from more than 600 farms covering 12 regions and 45 divisions in 3 countries, Cameroon, the Central African Republic and the Democratic Republic of Congo. Results: Farmers choose one of three agricultural systems to maximize farm profit mindful of the current tenure regime and environmental conditions. Conservation agriculture techniques within climate-smart practices show benefits for smallholder farmers through improvements in soil health, soil moisture retention and enhanced crop yields. The rights to access, withdraw, manage, as well as exclude others from land and trees affect both the farmers' choice of system and the profit earned from the chosen system. Conclusion: Farm-level investments improve farm incomes and enhance conservation effort for farmers perceiving climate change. Implications for Conservation: Climate change adaptation through planting of trees improves soil stability, restores ecosystems and creates a safe haven for biodiversity. Secure land tenure promotes better forestland management and reduces land degradation in vulnerable communities.

Factors Influencing Farm-Land Value in the Czech Republic

Czech farm-land had enjoyed considerable growth in value from 2008 to 2019. This paper identifies the main determinants of agricultural land prices variations and how these variations are influenced by urbanization, lease payments, and subsidies. These three factors were thoroughly examined for the existence of a unit root using the Augmented Dickey Fuller Test. The long-run relationship between farm-land value and these elements was estimated using the co-integration approach, specifically the Johansen procedure. The estimation confirms the existence of this long-run relationship. Short-run fluctuation in agricultural land prices is explained using the Error Correction Model. As the most important variable in the short-run performance of Czech agricultural land prices, the authors identified the influence of urbanization. This information could be used to help regulators avoid potential agricultural land value instabilities and volatility in the market and hence would contribute to sustainable land use.

Spatial Differentiation and Influencing Mechanisms of Farmland Transfer Rents in Mountainous Areas: Evidence from Chongqing and Its Surrounding Areas

This study used Chongqing, a municipality in mountainous southwest China, and its surrounding areas as a case study to explore the spatial differentiation of farmland transfer rents in mountainous areas, with the aim of serving as a theoretical and practical reference to realize the value of farmland, ensure regional food security, and promote stable and sound development of the farmland transfer market. In doing so, we applied the GIS spatial analysis method to explore the spatial differentiation and influencing mechanisms of farmland transfer rents in mountainous areas. Our results indicate that farmland transfer rents in mountainous areas have a significant high and low clustering tendency. The high-value areas of farmland transfer rents are mainly located in the downtown area and the west of Chongqing, while the low-value areas are mainly distributed in the Daba Mountains and Wuling Mountains, which are two national contiguous areas of dire poverty. Location and terrain factors are the main driving forces for the spatial differentiation of farmland transfer rents in mountainous areas. Specifically, a 1% increase in farmland mean slope and farmland supply-demand ratio in the study area will lead to a 0.13 and 0.15% decrease in farmland transfer rents, respectively, while a 1% increase in GDP will drive up farmland transfer rents by 0.09%. The policy factor is not significant. The influence of terrain and farmland supply and demand on transfer rents increased from west to east, whereas the influence of traffic location on transfer rents decreased in an outward direction from the southwest of the study area. It is concluded that local governments should objectively view the spatial differentiation of farmland transfer rents in mountainous areas and avoid the blind comparison of transfer rents between regions. Mountainous areas with low transfer rents should focus on increasing the intrinsic value of farmland assets by stimulating effective demand for farmland and improving farming conditions, while mountainous areas with high transfer rents in major grain-producing counties should be wary of their impact on grain production to ensure regional food security.

Infrastructures of Farmland Valuation in Australia

ABSTRACT This article investigates how valuation practices change as land becomes financialised in Australia. Financial investors bring their own assumptions on how land value should be ‘measured’ to enhance its fungibility as a financial asset. Importantly, this includes a shift to a ‘future income’ approach to value, which produces frictions with established land valuation practices. Combining valuation and infrastructure studies, I examine how conceptualisations of value; techniques of standardisation, classification and comparison; devices for measuring and calculating; templates and databases; social networks and relationships; as well as multiple materialities facilitate, legitimise and stabilise land value. These infrastructures of value are crucial for making new conceptualisations of value productive while both enabling and limiting change in valuation practices. Value further emerges as an important infrastructure itself. Shared understandings of value, embedded and expressed in valuation infrastructures, work as a ‘conduit’, a mechanism necessary for people to come to agreements in exchange processes.

Study on Chinese Farmland Ecosystem Service Value Transfer Based on Meta Analysis.

An analytic database was built based on meta-regression analysis (MRA) method, mainly including ecosystem service type, farmland division, cultivated land type, value assessment method, and farmland characteristics. The feasible weighted least square (FWLS) method was adopted to comprehensively investigate the seventy observations from empirical studies. The results indicate that: (1) except the negative impact of farmland area on farmland value, such factors as paddy field, good soil conservation function, mainly providing agricultural products, and using market value method for assessment all produce positive effect on the promotion of farmland value. (2) In meta-regression analysis, the average transfer error is 36.74%, and the median transfer error is 14.59%. (3) Under the A1B, A2, B1, and B2 scenarios of IPCC SRES, it is discovered from calculation that the value changes under different scenarios have some differences, in which, the total value rises significantly under A2 scenario and will reach to 15,220 billion yuan until the year of 2100; while the total value loss is the greatest under B1 scenario and will fall to 6320 billion yuan until the year of 2100. Finally, this paper gives some suggestions for scholars to deeply study the service value of farmland ecosystem as well as for the government to formulate differentiation policies.

Evaluation of the Gross Ecosystem Product and Analysis of the Transformation Path of “Two Mountains” in Hulunbuir City, China

The objective assessment of ecological systems forms the basis of solving ecological environmental problems. Evaluating the ecosystem status of each county through the gross ecosystem product (GEP) can reveal the value of each ecosystem. In this study, we used the eco-economic method to calculate the GEP and the green gold index (GGI) of 13 counties in Hulunbuir City between 2015 and 2020. The results show that: (1) The GEP of Hulunbuir City in 2020 was 980.025 billion yuan. The GGI was 8.36, which was much higher than the national average. (2) Forestry and pastoral regions were the main contributors to the regulation service. (3) Hulunbuir City had the largest forest value, while the farmland value was the lowest. The most important sources of forest, grassland, wetland, water, and farmland value were Oroqen, Xin Right Banner, Xin Left Banner, Xin Right Banner, and Morin Banner, respectively. Based on our analysis, we found significant results through the transformation of the “Two Mountains” in Erguna, Genhe, and Zhalantun. The other counties in our study must optimize ecological research with respect to the traditional economic model. Our results provide a scientific reference for the application of the “Two Mountains” base in each county.

The Value of Farmland and Its Determinants—The Current State of the Art

This article aims to perform a literature review on the topic of farmland valuation, covering the determinants of farmland value and the models that are used to price land. To do so, recent literature on the topic was combined with classical and well-known papers. All the factors considered in these papers to explain farmland prices and/or to model them were retrieved, presented, and compared. Then, the main models proposed in the literature are presented and their suitability and goals are explained. This study can help academics as it gives an overview of the current state of the art, summarizes the main factors proposed by researchers to explain farmland prices, and sheds light on new lines of research. Besides that, it is also relevant for policymakers because farmland valuation and its use have implications on society and on urban planning, which is a hot topic under discussion.

A Predictive Model for Farmland Purchase/Rent Using Random Forests

This study contributes to guidance for understanding farmland purchase and rent decisions in Korea via an analysis using a machine learning tool, Random Forests: A Supervised Machine Learning Algorithm. Farm Household Economy Survey is employed to predict the relationship between farmland acquisition and farm household economic characteristics. Our main findings are two folds. First, a farmland purchase decision is positively related to transfer incomes, the value of inventory & fixed assets, and the value of farmland that farmers owned. Second, a farmland rent decision is also positively associated with a rent paid in a prior year, revenue from field crops, inventory and agricultural assets, and transfer incomes.