Assessment of agricultural land fund in the Czech Republic, importance and future

Vaclav Voltr

AGRIS on-line Papers in Economics and Informatics, 2011, vol. 03, issue 4, 10

Abstract: Assessment of land depends on the production function of soil and additional connections given by environmental requirements, by the evaluation of public goods or by the requirements for formation a fair tax policy and even by the interests of landowners. Analysis of coherences during the soil appraisal shows a relatively strong dependence on the development of year-by-year yields and cost including subsidy policy, which is strongly reflected in the grasslands. Development of subsidies does not basically influence a long- term return and costs ratio for the production on arable land. The requirements for formation of prices are given due to the need for stability of the mutual relations between the quality of soil and climatic conditions, which manifests itself mainly in land consolidation or the categorization, useful for example for the determination of LFA. The comprehensive solution provides a system of land evaluation by cost-revenue relationships, which includes evaluation of environmental context on the base of the assessment of physical characteristics of soil and economic contexts in BPEJ categorization. The development of value system relations according to the proposed annual gross rental effects (HRRE) shows a relatively stable assessment of land fund for arable land. The adjusted system of land value permits preferably to express a pointed value of land, which corresponds to the trend of a points system of VÚMOP. The actual current rating BPEJ is proposed to make in dependence on the level of market prices to a one point. Due to the different trends in the market prices of arable land and grassland is proposed to introduce a separate assessment of arable land and grassland.

Keywords: Land Economics/Use; Production Economics (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aolpei:120239

DOI: 10.22004/ag.econ.120239

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