Description

• Title:
  Determinants of farmland prices and their local variation
• Creator:
  Lee, Changro
• Description:
  The creation of farmland prices in the market not only reflects existing agricultural activities but also the expected future potential for development. This study decomposes farmland prices into values representative of current agricultural production and future development potential at the county level. The income value of farmland is derived by analyzing the agricultural revenue and production cost, and the sale value of farmland is estimated by reviewing the transaction prices filed with the administrative authority. The difference between the income value and the sale value is adopted as the development value in this study. The results of the estimation show that the proportion of development value in the price of farmland is remarkably high, with a median proportion of 0.78, indicating that the threat of converting land to non-agricultural use is non-trivial because it remains a financially attractive alternative. In addition, the magnitude of the portion of the development value in the price of farmland varies considerably across counties depending on the distance to nearby metropolitan cities. This implies that agricultural policy should be designed in a locally optimized manner to effectively restrain the conversion of farmland for urban use.;
  The setting of farmland prices in the market not only reflects existing agricultural activities but also expected potential for development. This study decomposes farmland prices into values representative of current agricultural production and the prospective development potential at the county level in South Korea. The income value of farmland is derived by analysing agricultural revenue and production cost, and the sale value of farmland is estimated by reviewing transaction prices filed with the administrative authority. The difference between income value and sale value is adopted as the development value in this study. The results of the estimation show that the proportion of development value in the price of farmland is remarkably high, with a median proportion of 0.78, indicating that the threat of converting land to non-agricultural use is non-trivial because it remains a financially attractive alternative. In addition, the magnitude of the portion of the development value in the price of farmland varies considerably across counties depending on the distance to nearby metropolitan cities. This implies that agricultural policy should be designed in a locally optimised manner to effectively restrain the conversion of farmland for urban use
• Object availability:
  free access
• Rights: https://creativecommons.org/licenses/by-nc-nd/4.0/ ;
  Prawa autorskie (c) 2021 Bulletin of Geography. Socio-economic Series
• Date:
  2021.12.10
• Type:
  info:eu-repo/semantics/article;
  info:eu-repo/semantics/publishedVersion
• Language:
  English
• Source:
  Bulletin of Geography. Socio-economic Series; No. 54 (2021): December; 77-87;
  Bulletin of Geography. Socio-economic Series; Nr 54 (2021): December; 77-87;
  2083-8298;
  1732-4254
• Format:
  application/pdf
• Publisher:
  Nicolaus Copernicus University in Toruń
• Relation: https://apcz.umk.pl/BGSS/article/view/35067/31010
• Subject:
  farmland price;
  income value;
  sale value;
  development value;
  land conversion;
  spatial analysis
• Identifier: https://apcz.umk.pl/BGSS/article/view/35067
• Data provider:
  Akademicka Platforma Czasopism
• Can I use it?:
  seek permission
• Type:
  text