Farmland values and agricultural growth: The case of Chile

Guillermo Donoso; José Cancino; William Foster

doi:10.7201/earn.2013.02.02

Authors

Guillermo Donoso Pontificia Universidad Católica de Chile
José Cancino Universidad Tecnológica de Chile, INACAP
William Foster Pontificia Universidad Católica de Chile

DOI:

https://doi.org/10.7201/earn.2013.02.02

Keywords:

Agricultural land values, Chile, Hedonic models

Abstract

This study analyzes the relationships between farmland values and factors associated with the growth in Chilean agriculture, and identifies agricultural land value’s determinants by estimating a log-linear hedonic price function. The results indicate that a parcel’s market value varies according to its suitability and productivity for different crops, its location and transport costs, its potential for residential use, and other factors that determine expectations of future income streams. Farms with soil aptitude for fruits, high-valued export-oriented crops that have led Chile’s agricultural boom, have higher values than those with forestry soil aptitude.

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Author Biographies

Guillermo Donoso, Pontificia Universidad Católica de Chile

Depto Economía Agraria

William Foster, Pontificia Universidad Católica de Chile

Depto Economía Agraria

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