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The future of agriculture in the shrinking suburbs: The impact of real estate income and housing costs

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  • Yagi, Hironori
  • Garrod, Guy

Abstract

This paper offers solutions to some of the challenges around maintaining productive agricultural land close to cities in countries facing a decline in urban populations. In such circumstances, some farmers have been observed to convert their land into real estate and leave farming before land prices decline, therefore decreasing the area of agricultural land close to large cities. In contrast, many suburban farmers in developed countries remain in farming even when land prices decline and suburbs shrink. We argue that such behaviour can be explained by a desire to remain in farming, even at the expense of profits. In such cases, agricultural income may be supplemented by rental income or by selling land. This paper demonstrates that, when land prices are high, a preferential taxation system may help farmers with real estate income to retain more of their land.

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  • Yagi, Hironori & Garrod, Guy, 2018. "The future of agriculture in the shrinking suburbs: The impact of real estate income and housing costs," Land Use Policy, Elsevier, vol. 76(C), pages 812-822.
    • Handle: RePEc:eee:lauspo:v:76:y:2018:i:c:p:812-822
    DOI: 10.1016/j.landusepol.2018.03.013
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    Cited by:

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    2. Mohammad Rondhi & Pravitasari Anjar Pratiwi & Vivi Trisna Handini & Aryo Fajar Sunartomo & Subhan Arif Budiman, 2018. "Agricultural Land Conversion, Land Economic Value, and Sustainable Agriculture: A Case Study in East Java, Indonesia," Land, MDPI, vol. 7(4), pages 1-19, November.
    3. Miyazaki, Tomomi & Sato, Motohiro, 2022. "Property tax and farmland use in urban areas: Evidence from the reform in the early 1990s in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 63(C).
    4. Shingo Yoshida & Hironori Yagi & Akira Kiminami & Guy Garrod, 2019. "Farm Diversification and Sustainability of Multifunctional Peri-Urban Agriculture: Entrepreneurial Attributes of Advanced Diversification in Japan," Sustainability, MDPI, vol. 11(10), pages 1-21, May.
    5. Ruishi Si & Yumeng Yao & Xueqian Zhang & Qian Lu & Noshaba Aziz, 2022. "Exploring the Role of Contiguous Farmland Cultivation and Adoption of No-Tillage Technology in Improving Transferees’ Income Structure: Evidence from China," Land, MDPI, vol. 11(4), pages 1-25, April.
    6. Coline Perrin & Camille Clément & Romain Melot & Brigitte Nougarèdes, 2020. "Preserving Farmland on the Urban Fringe: A Literature Review on Land Policies in Developed Countries," Land, MDPI, vol. 9(7), pages 1-20, July.
    7. MIYAZAKI Tomomi & SATO Motohiro, 2018. "Property Tax and Land Use: Evidence from the 1990s reforms in Japan," Discussion papers 18072, Research Institute of Economy, Trade and Industry (RIETI).
    8. Šárka Sobotovičová & Jana Janoušková, 2020. "Specifics of Real Estate Taxation in the Czech and Slovak Republics," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 26(3), pages 273-287, August.

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