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Fuzzy logic method of valuation supporting sustainable development of the agricultural land market

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  • Sabina Zrobek
  • Oleksandra Kovalyshyn
  • Małgorzata Renigier‐Biłozor
  • Stepan Kovalyshyn
  • Oleg Kovalyshyn

Abstract

This article proposes the possibility of applying fuzzy logic theory to perform the tasks of determining the market value of agricultural lands. These tasks are of a multi‐criteria character, as multiple factors are taken into consideration during the land value valuation process. The market value of agricultural land plots, calculated using fuzzy logic methods, can provide a basis for further use in the processes that are directly related to their turnover, that is, during auctioning, setting of a land tax, determining of the value of pawn in the land bank. Methodic approach to the determination of the market value of agricultural lands with the application of the methods of fuzzy logic and the package Fuzzy Logic Toolbox of the computing system Matlab is universal. It can be used for assessment of the value of a land plot with any number of indices, having no crisp mathematic model. The proposed method is particularly useful for countries where the agricultural real estate market is still in its early stages of development and will contribute to making it more transparent and thus it can be a significant tool supporting the sustainable development of the agricultural real estate market. Agricultural land market is a vital ingredient of the system for sustainable development of rural areas.

Suggested Citation

  • Sabina Zrobek & Oleksandra Kovalyshyn & Małgorzata Renigier‐Biłozor & Stepan Kovalyshyn & Oleg Kovalyshyn, 2020. "Fuzzy logic method of valuation supporting sustainable development of the agricultural land market," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(5), pages 1094-1105, September.
    • Handle: RePEc:wly:sustdv:v:28:y:2020:i:5:p:1094-1105
    DOI: 10.1002/sd.2061
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    Cited by:

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    2. Małgorzata Renigier-Biłozor & Sabina Źróbek & Marek Walacik, 2022. "Modern Technologies in the Real Estate Market—Opponents vs. Proponents of Their Use: Does New Category of Value Solve the Problem?," Sustainability, MDPI, vol. 14(20), pages 1-18, October.
    3. Melfi Alrasheedi & Abbas Mardani & Arunodaya R. Mishra & Dalia Streimikiene & Huchang Liao & Abdullah H. Al‐nefaie, 2021. "Evaluating the green growth indicators to achieve sustainable development: A novel extended interval‐valued intuitionistic fuzzy‐combined compromise solution approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 120-142, January.
    4. Vasco Capela Tavares & Fernando Tavares & Eulália Santos, 2022. "The Value of Farmland and Its Determinants—The Current State of the Art," Land, MDPI, vol. 11(11), pages 1-14, October.
    5. Justas Streimikis & Tomas Baležentis, 2020. "Agricultural sustainability assessment framework integrating sustainable development goals and interlinked priorities of environmental, climate and agriculture policies," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1702-1712, November.

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