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Evaluating the benefits from transport infrastructure in agriculture: a hedonic analysis of farmland prices

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  • Yu Sheng
  • Thomas Jackson
  • Kenton Lawson

Abstract

Access to transport infrastructure generates a range of benefits to the agriculture sector; many of which are difficult to measure directly. In this study, we use hedonic regression analysis of farm†level data to examine the contribution of transport infrastructure to the value of farmland traded between 2009 and 2011 through its impact on farm productivity. We show that a one per cent reduction in the cost of transportation between farms and ports leads to a 0.33 per cent increase in land prices, and there is no significant difference between rail and road transportation at the aggregate level. Moreover, the benefits generated by particular types of infrastructure services vary between industries and with farm size, suggesting there are multiple channels through which public infrastructure influences agricultural production. Our findings help to inform future investment decisions in Australia and in other countries by providing new evidence regarding the benefits of existing transport infrastructure.

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  • Yu Sheng & Thomas Jackson & Kenton Lawson, 2018. "Evaluating the benefits from transport infrastructure in agriculture: a hedonic analysis of farmland prices," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(2), pages 237-255, April.
    • Handle: RePEc:bla:ajarec:v:62:y:2018:i:2:p:237-255
    DOI: 10.1111/1467-8489.12243
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    Cited by:

    1. Ritter, Matthias & Hüttel, Silke & Odening, Martin & Seifert, Stefan, 2020. "Revisiting the relationship between land price and parcel size in agriculture," Land Use Policy, Elsevier, vol. 97(C).
    2. Chun-Chang Lee & Yi-Xin Chen & Yun-Ling Wu & Wen-Chih Yeh & Chih-Min Liang, 2020. "Multilevel Analysis of the Pressure of Agricultural Land Conversion, Degree of Urbanization and Agricultural Land Prices in Taiwan," Land, MDPI, vol. 9(12), pages 1-21, November.
    3. Roberts, Shane & Brooks, Kathleen & Nogueira, Lia & Walters, Cory G., 2022. "The role of quality characteristics in pricing hard red winter wheat," Food Policy, Elsevier, vol. 108(C).
    4. Krzysztof Pakuła & Krystyna Pieniak-Lendzion & Marcin Becher & Beata Kuziemska, 2021. "Selection of the supplier of production means as a risk element in farm logistics," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(4), pages 585-594, June.
    5. Pei-Ing Wu & Ching-En Su & Je-Liang Liou & Ta-Ken Huang, 2023. "Evaluation of the Contribution of Farmland Attributes to the Total Benefit from Its Contamination Remediation: Evidence from Taiwan," Land, MDPI, vol. 12(5), pages 1-22, April.
    6. Stefan Seifert & Christoph Kahle & Silke Hüttel, 2021. "Price Dispersion in Farmland Markets: What Is the Role of Asymmetric Information?," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1545-1568, August.
    7. Sheng, Yu & Tian, Xiaohui & Qiao, Weiqing & Peng, Chao, 2020. "Measuring agricultural total factor productivity in China: pattern and drivers over the period of 1978-2016," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(1), January.

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