Agricultural land conversion (ALC) is an incentive-driven process. In this paper, we further investigate the inter-relationship between land economic value (LEV) and ALC. To achieve this goal, we calculated the LEV for agricultural and non-agricultural (housing) uses in two areas of East Java, Indonesia. The first area represents peri-urban agriculture, which is facing rapid urbanization and experiencing a high rate of ALC. The second area represents rural agriculture, with zero ALC. Furthermore, we identified factors affecting LEV in both areas for both uses. The results of this study show that agricultural land yielded a higher economic benefit in rural areas. Conversely, compared to agricultural land, housing in urban areas yields a value that is seven times higher. Moreover, agricultural land was shown to yield a higher profit after conversion. Ironically, a similar comparison does not exist in rural areas. Agricultural land yielded a value that was only 19% higher, indicating that agricultural land can easily be converted. This is also proven by the growing number of new urban cores in the periphery area. There are several factors affecting land economic value, such as agricultural use, soil fertility, accessibility, and cropping pattern, which are important variables. Meanwhile, the accessibility and location of peri-urban areas increase the land value for housing.

Agricultural land conversion (ALC) is an incentive–driven process. In this paper we further investigate the inter–relationship between land economic value (LEV) and ALC. To achieve this goal, we calculated LEV for agricultural and non-agricultural (housing) uses in two areas in East Java, Indonesia. The first area represents suburban agriculture, facing rapid urbanization and experiencing high rate of ALC. The second area represents rural agriculture with zero ALC. Furthermore, we identified factors affecting LEV in both areas for both uses. The resut of this study show that agricultural land yielded higher economic benefit in rural area. Conversely, comparing to agricultural land, housing creates 7 times higher value in urban area. Moreover, agricultural land shown to create higher profit after converted. Ironically, the similar comparison doesn’t exists in rural area. Agricultural land only yielded 19% more value, indicate that agricultural land can be easily converted. It is also proven by the growing number of new urban core in the periphery area. There are several factors affecting land economic value, for agricultural use, soil fertility, accessibility, and cropping pattern are important variables. While accessibility and location in urban area increases land value for housing.

The data in this article describes the land use characteristics at peri-urban and rural areas, on Jember District, in the Province of East Java, Indonesia. The types of land use covered in the data are agricultural and residential land. The data was a result of a research collaboration between the Department of Agribusiness, Department of Soil Science, and the Department of Agricultural Extension in the University of Jember. The general purpose of the data collection was to compare the characteristics of different land use in the peri-urban and rural area. The data has been compiled to investigate the economic rent of varying land use in peri-urban and rural areas to explain the dynamic of farmland conversion, and to investigate the farmland distribution among farmer in the peri-urban area. The data contains technical and socio-economic aspects of land use in peri-urban and rural areas. The data were collected through structured interviews with farmers and homeowners in each area. A total of 200 interviews were conducted to 100 farmers and homeowners. The location of each respondent was recorded with the location-marking feature of the GPS to represent the distribution of samples. The tracking feature of the GPS was used to locate the physical infrastructure such as irrigation canal, road, and market. In total, the data contained 29 variables and attached as the supplementary material of this data article.

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