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The evolution of land values in Italy. Does the influence of agricultural prices really matter?

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  • Mela, Giulio
  • Longhitano, Davide
  • Povellato, Andrea

Abstract

Interest towards farmland market has been increasing in recent years. In developing countries there is rising concern about land being purchased by foreign investors, while in the developed world the debate is centred on whether agricultural factors are still the main determinants of land values or not. This work assesses the determinants of land values in Italy using panel data techniques during the time span 1992-2010. In Italy farmland values have historically been influenced more by natural characteristics of the land than agricultural prices. However, lately non-agricultural factors have been increasing their importance. We find that agricultural prices only slightly affect average land values in Italy. Main determinants of land prices are the yield from real estate investment, GDP per capita, house prices, and population density. For arable land also environmental regulations for livestock farms positively affects values.

Suggested Citation

  • Mela, Giulio & Longhitano, Davide & Povellato, Andrea, 2012. "The evolution of land values in Italy. Does the influence of agricultural prices really matter?," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122479, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa123:122479
    DOI: 10.22004/ag.econ.122479
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    References listed on IDEAS

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    7. Gutierrez, Luciano & Erickson, Kenneth W. & Westerlund, Joakim, 2005. "The Present Value Model, Farmland Prices and Structural Breaks," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24702, European Association of Agricultural Economists.
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    Cited by:

    1. Xinyue Yang & Martin Odening & Matthias Ritter, 2019. "The Spatial and Temporal Diffusion of Agricultural Land Prices," Land Economics, University of Wisconsin Press, vol. 95(1), pages 108-123.
    2. Martina Bozzola & Emanuele Massetti & Robert Mendelsohn & Fabian Capitanio, 2018. "A Ricardian analysis of the impact of climate change on Italian agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 45(1), pages 57-79.

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