Winter 2016, Vol. 13, No. 2

Understanding the value of agricultural land

Factors that affect the demand for, and hence the value of farm land are many and varied, and often poorly understood. Many farmers complain that land values are unsustainable relative to earning capacity, yet existing landholders are often the most aggressive purchasers of additional land. International and corporate investors often seem to place a higher value on farm land than existing landholders, but many question whether these investors ever generate viable returns.

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The Valuation of Agricultural Assets in Australia

Tim Lane

The valuation of agricultural assets in Australia underpins the agricultural land market for purchasers, sellers (vendors), neighbouring farmers, and the banking and investment sectors. The rigour and accuracy of the valuation process is imperative for all these users. There are a myriad of methods and approaches used to value agricultural land. Buy now

The Effects of Financialisation on Farmland Demand

Mark Henry

The popularity of farmland is on the rise with new investors that have little or no prior connection to agriculture. Investing in farmland is viewed as a way of capitalising on the concern over food supply in the face of population growth, dietary change of the Asian middle class and apparent land scarcity. Its reputation as a long-term defensive asset which holds its value in periods of low returns adds to its appeal. Buy now

Explaining Changes in Farmland Prices: Another Grail Quest

Professor Charles Moss

The pricing of farmland has been an important aspect in the field of agricultural economics almost from the inception of the discipline. This paper explains how a variety of factors affect farmland values including financial market fundamentals, government policy, macroeconomic factors, and urban pressure. Unfortunately, the explanatory power of our models tends to be low. Buy now

The Analysis of NSW Rural Property Investment Returns: 1990–2014

Professor Chris Eves

Increasing populations and demand for urban development land is also placing greater pressure on food production. These population pressures are now being reflected in the need for increased agricultural food production from a declining rural land base. This increasing demand for rural land is also being evidenced by the additional interest shown by corporations and investment institutions in owning high quality rural land across a range of countries. Buy now

Trends and Determinants of US Farmland Values Since 1910: Evidence from the Iowa Land Value Survey

Dr Wendong Zhang and Zachariah Beek

Valued at 2.31 trillion US dollars in 2016, farm real estate (land and structures) accounted for 85% of total US farm assets; in addition, farm real estate also represents the largest single item in a typical farmer’s investment portfolio. As a result, changes in its values have been of perennial interest to policy-makers, farmers, researchers and investors alike. Buy now

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