Land rent values determinants: a Hedonic Pricing approach at local scale

Abstract

Farmland values are driven by a complex set of factors. Starting from the idea that land rent values may reflect several characteristics both internal and external to agricultural sector, the paper has implemented a hedonic model based on land rent values in the metropolitan area of Milan, Northern Italy, assessing the influence of climate, soil, territorial and farm variables on a sample of farms. The model is based on data at rent contract level, matched with data at farm and municipal scale retrieved from different sources. Results confirm that land rent prices are affected by some climate variables, along with territorial and farm characteristics.

Keywords

• farmland rent values
• hedonic model
• climate