Land Pricing Model: Price Re-evaluation Due to the Erosion and Climate Change Effects

Slaboch, Josef; Čechura, Lukáš

doi:10.7160/aol.2020.120408

Cited by 5 publications

(4 citation statements)

References 18 publications

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“…In this case, the R 2 was 0.95. The complete model for the Czech Republic is detailed in the publication Slaboch and Čechura (2020).…”

Section: Resultsmentioning

confidence: 99%

Agriculture Land Price Setting Systems, and Possible Directions for Their Updating

Slaboch¹,

Malý²

2022

Acta Univ. Agric. Silvic. Mendelianae Brun.

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The aim of this article is to assess the effect of the applied land valuation system on the price of land, and as a consequence of the implied links to compare the valuation of soil units in Slovakia and the Czech Republic. In order to fulfil this objective, an econometric approach was chosen in the form of a hedonic price model, whereby the heteroscedastic corrected linear regression model was specifically applied. The estimated model shows a very high explanatory ability, together with a high parametric significance for most fictitious variables (land characteristics), and at the same time also fulfils the theoretical and logical consistency of general assumptions. From the results, it is evident that, in the case of Slovakia, ESEU [evaluated soil ecological unit] valuation is affected primarily by the climatic region and the main soil unit. When comparing the results of the effect of individual input factors on the price of land in the Czech Republic and Slovakia, it can be stated that the results are slightly different in the effect of certain factors. The characteristics of soils located in warm climatic regions with a valuable soil type of chernozem and low slope are significant and positively intensive factors.

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“…In this case, the R 2 was 0.95. The complete model for the Czech Republic is detailed in the publication Slaboch and Čechura (2020).…”

Section: Resultsmentioning

confidence: 99%

Agriculture Land Price Setting Systems, and Possible Directions for Their Updating

Slaboch¹,

Malý²

2022

Acta Univ. Agric. Silvic. Mendelianae Brun.

Self Cite

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“…For some areas, it may represent an opportunity. This may be reflected in land values and generally influence the land market [45][46][47]. Acknowledging the intricate interplay among various factors and the specific context of empirical research, the results call for a broader framework to assist policymakers, stakeholders, and researchers in formulating strategies that address the complex forces impacting farm expansion and land investments.…”

Section: Discussionmentioning

confidence: 97%

Factors Affecting the Land Investment Decisions in the Old Members of the European Union: A Systematic Literature Review

Russo,

Ghelfi,

Raggi

et al. 2024

Land

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In response to concerns over land concentration and access within the European Union, this study seeks to elucidate the factors influencing farmers’ decisions to invest in land and the consequent growth of farm size. Employing a systematic literature review utilizing the PRISMA method, we delve into theoretical and empirical studies to bridge the gap between agricultural management practices and land market dynamics. Our analysis reveals a complex interplay of endogenous and exogenous factors, including technological advancements, farm characteristics, demographic factors, macroeconomic conditions, and policy environment, significantly impacting investment behaviours and farm growth trajectories. The research highlights the underexplored impact of external factors like policy and land regulation, which are scarcely addressed in empirical studies despite their substantial influence on farm-size evolution and investment decisions. Furthermore, the study emphasizes the need for future research to incorporate a more comprehensive framework that integrates internal farm dynamics with broader economic and policy contexts, thereby facilitating a deeper understanding of the agricultural sector’s resilience and sustainability. The findings underscore the critical role of adopting innovative methodologies and approaches to fully understand the dynamics of farm growth and land investments, aiming to support policymakers, stakeholders, and researchers in fostering sustainable agricultural practices.

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“…The fourth digit indicates a combination of slope and exposure (0-9), and the fifth digit (0-9) stands for a combination of soil profile depth and skeletality (for more details see Table 1). To determine the shadow prices of input variables, the original methodology from a publication by [33] was used and slightly modified, where a heteroscedastic corrected linear regression model was used for the estimate, similarly to other European studies; see, for example, [34]. The concept and estimation of the model met the standard specification and stochastic assumptions, i.e., the estimation of the model (while respecting the heteroscedastic correction) can be considered fully verified.…”

Section: Methodsmentioning

confidence: 99%

“…The exact specifications of the individual input variables are set forth in Table 1. Compared with the methodology mentioned in the article by [33], there was a better specification for the SDR combined code, where, for practical purposes, worsening variables in terms of exposure were defined within the scope of climate regions 0-5 and 6-9. In climate regions 0-5, southern exposure was regarded as worsening, while in contrast, for climate regions 6-9, northern exposure was regarded as worsening.…”

Section: Methodsmentioning

confidence: 99%

Approaches towards Land Valuation and Land Pricing under the Influence of Geo-Climate Change

Slaboch

Malý

2022

Agriculture

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The Czech Republic is more or less unique in its dual system (official and market price) of agricultural land prices. In the case of the market price, there are several studies and approaches that assess the impact of individual variables on the market price of land. If we focus on the official price of land, its value in the Czech Republic is influenced by the evaluated soil ecological unit (ESEU) price. The ESEU price expresses the production potential of the land on the basis of soil quality indicators, which include the climatic region, the main soil unit, slope and exposure and, last but not least, the depth of the soil profile and skeletonisation. Climate change also means that the current values of the definition (e.g., for a climatic region, this refers to the average temperature or average precipitation) do not correspond to reality. No studies have looked in detail at the impact of soil quality indicators or climate change on the price of ESEUs. New and more accurate measurements of soil characteristics are increasing the number of ESEU codes, and prices have not yet been set for some codes. For this reason, we proposed the use of a hedonic method to determine shadow prices, which reflect the intensity and direction of the effect of each input variable on the price of an ESEU. A heteroscedastic corrected linear regression model was used to determine the coefficients, which presents in detail the effect of all included parameters on the final price of an ESEU in the results section. From the results, it was obvious that the shadow price coefficients themselves corresponded to basic generally accepted assumptions regarding the direction of effect. In the conditions of the Czech Republic, a significant influence on the price of an ESEU was mainly the slope with exposure and the depth of the soil profile with skeletonisation. These factors affected the productive capacity of the soil, which, in turn, translated into lower profitability of agricultural entities. The high explanatory ability of the hedonic model, with a high parametric significance for most of the used variables, was an important factor determining the robustness of the model as a repricing tool. The model set according to the prices of the applicable price decree can be used to set the prices of new or not-yet-valued ESEU codes under the conditions in the Czech Republic, or shadow prices can be used during climatic changes in the event of the transfer of the given soil unit to another climate region according to the general specification. It is therefore an important tool for the needs of the public administration.

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Land Pricing Model: Price Re-evaluation Due to the Erosion and Climate Change Effects

Cited by 5 publications

References 18 publications

Agriculture Land Price Setting Systems, and Possible Directions for Their Updating

Agriculture Land Price Setting Systems, and Possible Directions for Their Updating

Factors Affecting the Land Investment Decisions in the Old Members of the European Union: A Systematic Literature Review

Approaches towards Land Valuation and Land Pricing under the Influence of Geo-Climate Change

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