IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/55134.html
   My bibliography  Save this article

Agricultural land purchases for alternative uses – evidence from two farming areas in the Western Cape province, South Africa

Author

Listed:
  • Reed, L.L.
  • Kleynhans, Theo E.

Abstract

Purchases of agricultural land for diverse reasons, such as recreation or aesthetic appeal (collectively referred to as lifestyle purposes), has implications for agricultural land valuations, commercial agriculture and the acquisition of land for redistribution purposes. This paper reports on the extent of purchases of agricultural land for diverse reasons within an intensive and extensive agricultural farming area in the Western Cape, gathered through a survey of land buyers between January 2005 and October 2007. Descriptive statistics provide demographical information of buyers, their reasons for purchasing farms and the importance of specific characteristics of agricultural properties considered in such purchases. Analyses of variance convey more information regarding the different characteristics of agricultural properties considered by agricultural and lifestyle buyers. Survey results indicated that farm purchases for alternative purposes were substantial: more than half of all transactions in both the intensive and extensive area were for lifestyle reasons. Lifestyle buyers mostly rely on income from outside the agricultural sector for their livelihoods and financing of purchased properties, therefore they could focus on characteristics of farms unrelated to commercial agricultural production in their decision to buy agricultural properties. Characteristics such as the recreational opportunities provided by the property and its aesthetic beauty, including natural scenery, beautiful views and locations within a valley and set against a mountain, appealed to these buyers.

Suggested Citation

  • Reed, L.L. & Kleynhans, Theo E., 2009. "Agricultural land purchases for alternative uses – evidence from two farming areas in the Western Cape province, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 0(Issue 3), pages 1-20, September.
  • Handle: RePEc:ags:agreko:55134
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/55134/files/6.%20Reed%20_%20Kleynhans.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ian W. Hardie & Tulika A. Narayan & Bruce L. Gardner, 2001. "The Joint Influence of Agricultural and Nonfarm Factors on Real Estate Values: An Application to the Mid-Atlantic Region," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 120-132.
    2. Holstein, R.H. III, 2003. "Real Reconciliation," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2003, pages 1-4.
    3. Bastian, Chris T. & McLeod, Donald M. & Germino, Matthew J. & Reiners, William A. & Blasko, Benedict J., 2002. "Environmental amenities and agricultural land values: a hedonic model using geographic information systems data," Ecological Economics, Elsevier, vol. 40(3), pages 337-349, March.
    4. Rigoberto A. Lopez & Farhed A. Shah & Marilyn A. Altobello, 1994. "Amenity Benefits and the Optimal Allocation of Land," Land Economics, University of Wisconsin Press, vol. 70(1), pages 53-62.
    5. Katherine Inman & Donald M. McLeod & Dale J. Menkhaus, 2002. "Rural Land Use and Sale Preferences in a Wyoming County," Land Economics, University of Wisconsin Press, vol. 78(1), pages 72-87.
    6. Livanis, Grigorios T. & Moss, Charles B. & Breneman, Vincent E. & Nehring, Richard F., 2005. "Urban Sprawl and Farmland Prices," Working Papers 15657, University of Florida, International Agricultural Trade and Policy Center.
    7. Hans R. Isakson, 1997. "An Empirical Analysis of the Determinants of the Value of Vacant Land," Journal of Real Estate Research, American Real Estate Society, vol. 13(2), pages 103-114.
    8. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    9. Feng Xu & Ron C. Mittelhammer & Paul W. Barkley, 1993. "Measuring the Contributions of Site Characteristics to the Value of Agricultural Land," Land Economics, University of Wisconsin Press, vol. 69(4), pages 356-369.
    10. C. Arden Pope III & H. L. Goodwin, 1984. "Impacts of Consumptive Demand on Rural Land Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(5), pages 750-754.
    11. Hanson, Steven D. & Schwab, Gerald D., 1999. "1999 Michigan Land Values," Agricultural Economic Report Series 10933, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    12. Henderson, Jason R. & Moore, Sean, 2006. "The Capitalization of Wildlife Recreation Income into Farmland Values," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 0(Number 3), pages 1-14, December.
    13. David L. Chicoine, 1981. "Farmland Values at the Urban Fringe: An Analysis of Sale Prices," Land Economics, University of Wisconsin Press, vol. 57(3), pages 353-362.
    14. Yue Jin Shi & Timothy T. Phipps & Dale Colyer, 1997. "Agricultural Land Values under Urbanizing Influences," Land Economics, University of Wisconsin Press, vol. 73(1), pages 90-100.
    15. C. Arden Pope III, 1985. "Agricultural Productive and Consumptive Use Components of Rural Land Values in Texas," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(1), pages 81-86.
    16. Irwin, Elena G. & Nickerson, Cynthia J. & Libby, Lawrence W., 2003. "What are Farmland Amenities Worth?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 0(Issue 3), pages 1-4.
    17. D Maddison, 2000. "A hedonic analysis of agricultural land prices in England and Wales," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(4), pages 519-532, December.
    18. Henderson, Jason & Moore, Sean, 2006. "The Capitalization of Wildlife Recreation Income into Farmland Values," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(03), pages 597-610, December.
    19. Maybery, Darryl & Crase, Lin & Gullifer, Chris, 2005. "Categorising farming values as economic, conservation and lifestyle," Journal of Economic Psychology, Elsevier, vol. 26(1), pages 59-72, February.
    20. Wittenberg, Eric & Hanson, Steven D. & Harsh, Stephen B., 2005. "2004 Michigan Land Values," Agricultural Economic Report Series 10937, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:gam:jsusta:v:8:y:2016:i:4:p:343:d:67735 is not listed on IDEAS
    2. I. R. Aliu, 2016. "Marginal land use and value characterizations in Lagos: untangling the drivers and implications for sustainability," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 18(6), pages 1615-1634, December.
    3. Chiara Mazzocchi & Guido Sali, 2016. "Sustainability and Competitiveness of Agriculture in Mountain Areas: A Willingness to Pay (WTP) Approach," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-13, April.
    4. Eshun Gabriel & Tettey Christopher, 2014. "Agrotourism development in Ghana: A study of its prospects and challenges at Adjeikrom Cocoa Tour Facility," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 25(25), pages 1-19, September.

    More about this item

    Keywords

    Agribusiness;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:55134. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aeasaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.