Valuation of Sistan Plain Agricultural Land Using Hedonic Pricing Method

Document Type : Original Article


Department of Agricultural Economics, Faculty of Agriculture, Zabol University, Zabol, Iran



Introduction: Land is one of the most fundamental natural resources and plays a crucial role in
various sectors of the economy as a factor of production. Today, in addition to its primary role,
land has also become an asset due to its limited supply and unique economic conditions. With the
ever-increasing population and diverse demands for this resource across various economic sectors,
the issue of land scarcity and limitation has become more noticeable. Not having the ability to
transfer and move, insignificant depreciation in the process of consumption and production, and
most importantly, the heterogeneity of different units of land, make it difficult to formulate the
pattern of demand and supply of land. Therefore, it is not easy to estimate land supply and demand
functions. In this research, land is considered as a heterogeneous commodity, and valuing
agricultural land according to its unique characteristics is the aim of this study. Since land is one
of the most important resources in the agricultural sector, determining its real value can be very
important for land management, its more efficient use, and agricultural development. On the other
hand, it achieves the highest possible efficiency by optimizing scarce production factors such as
labor, tools, purchased inputs, and management ability. This study was conducted with the aim of
valuing the agricultural lands of the Sistan Plain using the hedonic pricing method in 2022-2023.
Material and Methods: For the valuation of agricultural land in the Sistan Plain, the villages of
Zulfiqari, Rahdar and Kod were selected as samples. The reason for choosing these villages is
access to river water and wells, which are valuable due to the cultivation of the land. In this study,
the hedonic pricing method was used to estimate the price of agricultural land in Zabol City. For
this purpose, in 1400-1401, 99 questionnaires were completed in the schools of Rahdar, Kod and
Zulfaqari villages of Zabul city using the simple random sampling method. After completing the
questionnaires, the simple logit model was estimated using Eviews7 software, and SPSS22
software was also used to estimate the statistical descriptions including the mean, minimum and
maximum variables. In this research, the effect of 15 variables on the price of one hectare of
agricultural land was investigated using the regression estimation method.
Results and Discussion: The results of linear logarithm model estimation showed that the variables
of ease of access to water, access to city water, ability to replant and distance to the main road had a
positive effect on the price of each hectare of agricultural land . The agricultural land in the mentioned
region benefits from less environmental pollution, limited urban and industrial development near
main roads compared to other parts of the country, and the presence of essential facilities and
infrastructure like water, electricity, and telephone, as well as easier transportation. These factors
have positively influenced the price of agricultural land. The desire to change land use is also very
high due to the mentioned conditions of low agricultural profit in the region and drought.
Conclusion: According to the topology of the area and the smoothness and lack of proper
drainage, in some cases, the price of agricultural land is affected by the presence or absence of
this factor. The percentage of the land under cultivation confirms the availability of water and
the quality and profitability of the product for the land owner, which will also have a positive
effect on the price of the land. On the other hand, the owner's desire to change agricultural use,
which is a less profitable activity compared to non-agricultural uses, increases the price of land.
The ability to change the use refers to the existence of the necessary permits, access to the
required facilities and infrastructure, and the profitability of this case. Meanwhile, the only
thing that has a negative effect on the price of agricultural land is the distance from the road,
the more the distance from the road, the lower the land price.


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