A macroeconomic analysis of the farmland value determinants in Italy

Abstract

The determinants of farmland value and the factors that have caused its changes over time have been discussed extensively in the economic literature. This studies offer different classifications of the determinants of the farmland value. The aim of this paper is to investigate the influence on the farmland value of the some macro-economic variables related to the agricultural sector both directly and indirectly. A multiple regression model is adopted to answer the research questions. The results showed, on the one hand, a strong influence of agricultural productivity, a regional expenditure allocated to the sector and an increasing diffusion in the regions of protected areas on the farmland value. On the other hand, we notice a lack of significance of the agricultural credit allocated. This results is unlike the expectations of growth in land values resulting from the realization of long-term investment.