Drivers for farmland value revisited: adapting the returns discount model (RDM) to the sustainable paradigm

Czyżewski, Bazyli; Kułyk, Piotr; Kryszak, Łukasz

doi:10.1080/1331677x.2019.1642778

Cited by 5 publications

(5 citation statements)

References 49 publications

(34 reference statements)

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“…This has been confirmed by many researchers (e.g. Czyżewski et al 2019). In turn, the selection of explanatory variables for the panel models was dictated by considerations of merit.…”

Section: Methodsmentioning

confidence: 55%

The income-assets relationship for farms operating under selected models in Poland

Grzelak¹

2022

AGR ECON-CZECH

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The aim of this paper is to outline the relationship between income and assets when taking into account selected models of farms' functioning. The following farm models are examined: traditional, industrial, sustainable, and organic. Panel models were used that were based on the results of individual unpublished data for farms in Poland that undertook agricultural accounting according to the Farm Accounting Data Network (FADN) principles from 2004 to 2019. It was found that industrial farms had the clearest income-assets relationship, while traditional farms had the least clear relationship. The value of land, as a component of assets, was found to weaken the income-assets relationship. In consequence, the value of assets increased faster than income. Thus, the farmers are becoming wealthier in terms of the value of their assets, but this is not reflected in their income.

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“…This has been confirmed by many researchers (e.g. Czyżewski et al 2019). In turn, the selection of explanatory variables for the panel models was dictated by considerations of merit.…”

Section: Methodsmentioning

confidence: 55%

The income-assets relationship for farms operating under selected models in Poland

Grzelak¹

2022

AGR ECON-CZECH

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“…Such situation enhanced the importance of non-productive assets. In addition, the intrinsic growth in the price of agricultural land does not result from increasing in productivity with regard to this resource or from inflationary processes [ 41 ]. As increase in the value of assets in agricultural holdings results from intrinsic growth in the value of the land, an increase in the importance of non-productive assets or new land utilities is not conducive to an improvement in the income situation.…”

Section: Research Results and Discussionmentioning

confidence: 99%

“…The CAP reinforces the pressure on land prices due to decoupled payments. As a result, the rapid growth in land prices has become a significant barrier for farmers who want to increase the scale of their farming activities [ 41 ]. For example, as reported by Ciaian et al [ 7 ], in new EU member countries, the capitalisation rate was 79% after the budgetary reform period in 2013.…”

Section: The Literature Reviewmentioning

confidence: 99%

The relationship between income and assets in farms and context of sustainable development

Grzelak

2022

PLoS ONE

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The objective of this paper is to identify the relationship between farm income and assets within the European Union (EU) in the context of economic and environmental sustainable development. The scientific context is connected to economic theory (the recognition of the nature of such a relationship, as well as the determination of whether sustainable development acts as a stimulant or destimulant under these conditions). The Farm Accounting Data Network system was employed in the article. The econometric models were estimated by panel data based on the reported results of the farms operations in EU member states for the period of 2004–2018. Accordingly, the relationship between income and assets is positive and statistically significant, but not very clear in the group of surveyed farms. Moreover, economic sustainability was found to positively influences the relationship between income and assets. In contrast, the relationship between incomes and assets was weakened. The situation is brought about by the intrinsic growth in the value of the land, as well as by the growing importance of non-productive assets. Thus, farmers in EU countries are becoming wealthier in terms of the value of their assets but, this is not reflected directly in their income. The reason is the growing importance of environmental and social functions in the agriculture the European Union. Greater skills in asset management at farm level are, therefore, required to mitigate the situation.

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“…Variable u is a dummy variable. This model is based on studies [21,29,31,33] and the following independent variables:…”

Section: Regression Analysismentioning

confidence: 99%

Sustainable Spatial and Temporal Development of Land Prices: A Case Study of Czech Cities

Burian

Macků

Zimmermannová

et al. 2020

IJGI

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Only a limited number of studies have examined land price issues based on official land price maps. A very unique timeline of official land price maps (2006–2019) allowed research to be conducted on four Czech cities (Prague, Olomouc, Ostrava, and Zlín). The main aim of the research was to describe the links between land price, land use types, and macroeconomic indicators, and to compare temporal changes of these links in four cities of different size, type, and structure by using spatial data processing and regression analysis. The results showed that the key statistically significant variable in all cities was population size. The effect of this variable was mostly positive, except for Ostrava, as an example of a developing city. The second statistically significant variable affecting land prices in each city was discount rate. The effect of other variables differed according to the city, its characteristics, and stage of economic development. We concluded that the development of land prices over time was slightly different between the studied cities and partially dependent on local spatial factors. Nevertheless, stagnation in 2010–2011, probably as a consequence of the global economic crisis in 2009, was observed in each city. Changes in the monitored cities could be seen from a spatial point of view in similar land price patterns. The ratio of land area with rising prices was very similar in each city (85%–92%). The highest land prices were typically in urban centers, but prices rose only gradually. A much more significant increase in prices occurred in each city in their peripheral residential areas. The results of this study can improve understanding of urban development and the economic and spatial aspects of sustainability in land price changes.

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Drivers for farmland value revisited: adapting the returns discount model (RDM) to the sustainable paradigm

Cited by 5 publications

References 49 publications

The income-assets relationship for farms operating under selected models in Poland

The income-assets relationship for farms operating under selected models in Poland

The relationship between income and assets in farms and context of sustainable development

Sustainable Spatial and Temporal Development of Land Prices: A Case Study of Czech Cities

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