Farmland pricing in an inflationary economy with implications for public policy

Abstract

While the importance of the price of land in agricultural production and policy is well recognised, land price formation is a process not well understood. The study reported here was aimed at an examination of the cause and implications of farmland price inflation in New Zealand over the past 20 or so years. The report attempts to isolate some of the factors other than annual earnings that could explain the sudden increase in the market value of farmland during an inflationary period.