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Agricultural and non-agricultural determinants of Italian farmland values

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  • Mela, Giulio
  • Longhitano, Davide
  • Povellato, Andrea

Abstract

Interest towards farmland market has been increasing in recent years. In developing countries there is a rising concern about land being purchased by foreign investors, while in the developed world the debate is focused on whether agricultural factors are still the main determinants of land values or not. This work assesses the determinants of land values in Italy using TSCS data techniques during the time span 1992-2013. In Italy farmland values have historically been influenced more by natural characteristics of the land than agricultural prices. However, lately non-agricultural factors have been increasing their importance. We find that the main determinants of Italian farmland prices are population density, GDP per capita, land productivity, agricultural prices and farm subsidies. In the case of vineyards, changing rainfall patterns due to climate change have also a significant impact. Environmental regulations for livestock farms positively affects arable land values.

Suggested Citation

  • Mela, Giulio & Longhitano, Davide & Povellato, Andrea, 2016. "Agricultural and non-agricultural determinants of Italian farmland values," 2016 Fifth AIEAA Congress, June 16-17, 2016, Bologna, Italy 242327, Italian Association of Agricultural and Applied Economics (AIEAA).
    • Handle: RePEc:ags:aiea16:242327
    DOI: 10.22004/ag.econ.242327
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    2. Adenuga, A. & Davis, J. & Hutchinson, G. & Donnellan, T. & Patton, M., 2018. "Valuing Agricultural Externalities: Nitrogen Surplus in the Dairy Sector on the Island of Ireland," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277434, International Association of Agricultural Economists.
    3. Adewale Henry Adenuga & John Davis & George Hutchinson & Trevor Donnellan & Myles Patton, 2019. "Environmental Efficiency and Pollution Costs of Nitrogen Surplus in Dairy Farms: A Parametric Hyperbolic Technology Distance Function Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1273-1298, November.

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