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Determinants of agricultural land values in Argentina

Author

Listed:
  • Pascale PHELINAS
  • Johanna CHOUMERT

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

Abstract

In the context of the rapid development of the cultivation of genetically modified soybeans in Argentina, we conduct a hedonic analysis of agricultural land values. The main objective is to evaluate the impact of land tenure systems and agricultural practices on these values. Data on 338 parcels, located in the Pampas region, are analyzed. The tenure appears to be a particularly important variable. We find that plots rented either by physical persons or by companies are negatively valued in relation to plots owned. Results also highlight the importance, though not to a large degree, of a diversified cropping pattern compared to soybean monoculture. Soil quality, location of the plots, distance to markets, as well as to the nearest city, were also found to affect land values.

Suggested Citation

  • Pascale PHELINAS & Johanna CHOUMERT, 2014. "Determinants of agricultural land values in Argentina," Working Papers 201416, CERDI.
  • Handle: RePEc:cdi:wpaper:1586
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    More about this item

    Keywords

    Genetically modified soybean; Hedonic prices; Farmland values; Argentina; Tenure;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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