Drivers for farmland value revisited: adapting the returns discount model (RDM) to the sustainable paradigm

Bazyli Czyżewski , Piotr Kułyk , Łukasz Kryszak


In recent studies many researchers have identified non-agricultural attributes of land that significantly contribute to its value. They claim that the increasing proportion of the value of land may now be explained by environmental amenities in rural areas. On the other hand, mainstream economics says that farmland values are determined by the discounted stream of returns (present value model). The main aim of this work was to adapt neoclassical concept of the Returns Discount Model (RDM) of Saphiro–Gordon type to the case of a land market in Poland. We introduced a modified RDM (i.e. the multilevel variance component model) to answer whether it remains applicable to the valuation of farmland in the context of sustainable agriculture. It was found that in spite of the growing role of non-productive functions of agriculture the improved RDM continues to perform well as a tool to assess changes in land prices.
Author Bazyli Czyżewski (WE / KMiGŻ)
Bazyli Czyżewski,,
- Department of Macroeconomics and Agricultural Economics
, Piotr Kułyk - Uniwersytet Zielonogórski (UZ)
Piotr Kułyk,,
, Łukasz Kryszak (WE / KMiGŻ)
Łukasz Kryszak,,
- Department of Macroeconomics and Agricultural Economics
Journal seriesEkonomska Istrazivanja-Economic Research, ISSN 1331-677X, e-ISSN 1848-9664, (N/A 70 pkt)
Issue year2019
Publication size in sheets0.9
Keywords in Polishcena ziemi rolnej, PVM, model Gordona, rozwój zrównoważony, rolnictwo, renta gruntowa
Keywords in EnglishFarmland price, RDM model, present value model, sustainable agriculture, land rent
ASJC Classification2002 Economics and Econometrics
Languageen angielski
Score (nominal)70
Score sourcejournalList
ScoreMinisterial score = 70.0, 07-04-2020, ArticleFromJournal
Publication indicators WoS Citations = 0; Scopus SNIP (Source Normalised Impact per Paper): 2018 = 0.775; WoS Impact Factor: 2017 = 1.137 (2) - 2017=0.839 (5)
Citation count*2 (2020-09-12)
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.
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