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The Effect of Economic Factors on Rural Land Values

Author/s: Chris Eves

Date Published: 1/01/2000

Published in: Volume 6 - 2000 Issue 2 (pages 12 - 30)

Abstract

Despite continuing world discussions in relation to free trade the majority of first world countries still have a very heavily subsidised rural economy. Over the past twenty years countries such as Australia and New Zealand have been reducing farm support schemes to the point where now these rural industries are competing on a free world trade market basis. The reduction in farm commodity and input support has placed significant managerial pressure on Australian farmers to compete and survive in a market that fluctuates from periods of high commodity prices to low prices based on total world supply and demand. This paper will examine the change in rural land prices within an area of New South Wales to determine the extent of rural land price change and returns over a twenty year period. The paper will also examine the change in major rural input and output costs over the same time. This analysis will examine the influence of these factors on rural land prices.

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Keywords

Farm Management - Land Use - Rural Economics - Rural Land - Rural Land Values

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