Land Values and Allotment Rents

The Impact of a Land Tax on Future Investments: A Note

“…It is common practices by economics to refer to these "quasi rents" to land (and other factors not perfectly elastic in supply) as economic rent, defined as the difference between the total payment to a resource and the opportunity cost of a resource not perfectly elastic in supply. However, to the individual firm (farm) land is a cost of production and not a rent (Bullock et. al., 1977).…”

Agricultural economics: an exoteric or esoteric science?

“…However, as agriculture operation and Development (OECD) countries, agricultural economists became increasingly drawn to the development problems of poor countries, to trade and the macroeconomic policy implications of agriculture in richer countries, and to issues in production, consumption, environmental and resource economics from the 1960s. It is interesting to note that only one South African has succeeded in publishing in the AJAE -namely, Nieuwoudt (1976), ironically on an issue of importance to agriculture in the US and not South Africa, and a year later (Bullock et al, 1977) in a more theoretical paper. Another notable publication was that of Du Toit (Heady & Du Toit, 1954) Table 4 shows the number of degrees awarded in Agricultural Economics in South Africa since the beginning of formal teaching in the subject for those universities that provided the information (which means that the totals are underestimated), while Table 5 shows some trends in these data where they are available.…”

Land Rents and Production Costs in the South African Sugar Industry

“…Owners of these resources are, therefore, the main beneficiaries of farm support programmes. Bullock et al (1977) maintained that a quota has no alternative use arid is perfectly inelastic in supply. Quotas 'are fully utilized and, hence, acquire economic value as long as the return to the resources required in allotted crops is greater than from alternative enterprises' (ibid., p. 380).…”

“…When -a land quota is used to restrict output, the annual rent to the quota is capital-ized into the value of land. If a quota should, be abolished, Bullock et al (1977) have demonstrated that 'the change in land value (and, hence, should production quotas be abolished some of the existing quota rents may be transferred to land rents, resulting in higher land prices. Nieuwoudt (1980, p. 395) has suggested that rent data could provide a useful check on production cost data by deducting rent per hectare from gross income per hectare.…”