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Is South African Agricultural Land Overvalued? Common Misconceptions

Author

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  • van Schalkwyk, H. D.
  • van Zyl, J.

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.

Suggested Citation

  • van Schalkwyk, H. D. & van Zyl, J., 1994. "Is South African Agricultural Land Overvalued? Common Misconceptions," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 33(4), December.
    • Handle: RePEc:ags:agreko:267733
    DOI: 10.22004/ag.econ.267733
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    References listed on IDEAS

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    1. J. A. Groenewald, 1978. "Notes and Comments Production Quotas in Agriculture: Comment," South African Journal of Economics, Economic Society of South Africa, vol. 46(1), pages 41-43, March.
    2. Don Paarlberg, 1962. "Discussion: Contributions of the New Frontier to Agricultural Reform in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 44(5), pages 1179-1183.
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    Cited by:

    1. Fazleen, Abdul & Stephan, Von Cramon, 2015. "The Policy Analysis Matrix of Profitability and Competitiveness of Rice Farming in Malaysia," 2015 Conference, August 9-14, 2015, Milan, Italy 210872, International Association of Agricultural Economists.
    2. Potgieter, P. J. & Heunis, J. C., 1995. "Considerations With Regard To Land Reform In The Free State : Land Use, Availability And Needs," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 34(4), December.

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