Production costs and land appraisal: A case study of Polatlı, Turkey

Abstract

In this study, the share of land rent in the fixed costs of wheat production was examined, and the aim of the study was to find land values using cost tables. To this purpose, we showed the effect of these on land values from the difference between field rents and net income. The study covered the district of Polatlı in Ankara province. Data on wheat production in Polatlı in 2017 was collected from six villages and 37 farms by means of a questionnaire. In selecting the farms, the ability to determine the land rent was taken into account as a selection criterion. The farms examined used on average per hectare, 11.9 hours of labor, 7.7 hours of draft power, 354.3 kg of fertilizer, 205.5 kg of seed, and 1.5 liters of agricultural chemicals. The average wheat production cost per hectare was $865.42; the average unit production cost was $0.23, and the production value was reported to be $1012.40/da. In this study, the land rent was of $225.40, and the net income from the land was reported to be $372.42. It was reported an evaluation performed using the taxation tables that land values according to rental incomes were $4508.80/ha, and $7448.40 when the land was worked by the landowner. Land rent constituted 26.05% of total production costs, and were equivalent to 22.26% of production value. When crop prices increased by 1%, income from the land increased by 4.49%.

A Review of Rural Land Capitalization: Current Status and Further Research

“…The articles selected for analysis were organized in reverse chronological order, spanning 27 articles from 2023 [35][36][37][38][39], 2022 [40][41][42][43][44][45], 2021 [46][47][48][49][50], 2020 [51][52][53][54][55], and 2019 [56][57][58][59][60][61]. Among the retrieved literature, the research methods employed were categorized into quantitative and qualitative analyses.…”

“…Findings indicate that the improvement in land resource endowment has a prominent short-term effect on poverty reduction, while the enhancement of land capital endowment exhibits a relatively prolonged impact on rural poverty [40]. Additionally, when calculating land lease prices and considering the impact on economic benefits, models like the present value analysis model [41], income capitalization model, and multiple component analysis are employed [39,41,47,49,58].…”

“…Pleasure pricing [37,38] Capitalization of income [39,49] Life cycle assessment [50,53] Empirical analysis Discrete experiments [41] Link tracking [42] Game theory [61] Qualitative analysis…”