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The proximity of a field plot and land-use choice: implications for land consolidation

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  • Grammatikopoulou, Ioanna
  • Myyra, Sami
  • Pouta, Eija

Abstract

Traditional methods in agricultural economics and agricultural engineering have yielded mixed results when specifying the costs of an unfavourable parcel structure. Concepts related to travel costs and the production function are frequently applied when the costs of farming distant parcels are examined. However, farmers’ perspective regarding preferences for land use is ignored or partly overlapped by predictions made by researchers. Based on applied econometric models fitted to stated preference data, we revealed that the proximity of a field plot is a relevant factor affecting land-use decisions. One-fourth of landowners would change the use of a field plot if the condition of distance was changed. Landowners would continue farming a field plot if its distance from the farm compound was reduced, being willing to accept on average €79 less in net income per ha per year. The effect of a greater proximity of field plots to the farm compound following land consolidation was heterogeneous, particularly depending on the farm size and its location.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114602.

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Date of creation: 2011
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Handle: RePEc:ags:eaae11:114602

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Keywords: land use options; distance factor; land consolidation; choice experiment; multinomial logit model; random parameters model.; Land Economics/Use;

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  1. Zhang, Yanjie & Wang, Xiaobing, 2009. "Land Reallocation and Its Impacts on Technical Efficiency --Evidence from China’s Agricultural Production," 2009 Conference, August 16-22, 2009, Beijing, China 51954, International Association of Agricultural Economists.
  2. Sami Myyrä & Eija Pouta, 2010. "Farmland Owners’ Land Sale Preferences: Can They Be Affected by Taxation Programs?," Land Economics, University of Wisconsin Press, vol. 86(2), pages 245-262.
  3. Bhat, Chandra R., 2001. "Quasi-random maximum simulated likelihood estimation of the mixed multinomial logit model," Transportation Research Part B: Methodological, Elsevier, vol. 35(7), pages 677-693, August.
  4. Wu, Ziping & Liu, Minquan & Davis, John, 2005. "Land consolidation and productivity in Chinese household crop production," China Economic Review, Elsevier, vol. 16(1), pages 28-49.
  5. Lerman, Zvi, 2002. "Productivity And Efficiency Of Individual Farms In Poland: A Case For Land Consolidation," 2002 Annual meeting, July 28-31, Long Beach, CA 19835, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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