FACTORS AFFECTING AGRICULTURAL LAND PRICES AND THEIR SPATIAL DIFFERENCES

Abstract

This article provides an overview of the factors that determine the prices of agricultural land and their spatial differences through the literature review. Agricultural land is a factor of production and one of the three determinants that affects food production. Compared to other factors of production, land is very specific in nature. First of all, the land is located in the territory and is immovable, its resources are limited, and the plots of agricultural land are decreasing every year with the acceleration of urbanization. It has a significant impact not only for a land supply, demand and price, but also encourages policy decisions that restrict the agricultural land market. The article summarizes the academic literature in order to prepare a theoretical basis for the empirical analysis of the factors determining the prices of agricultural land and their spatial differences. These land price factors are grouped into groups such as economic and political. The article also provides an overview of interpretations of the concept of land value and land price.