NSW rural land performance : 1990-2005
The annual income return for rural property is based on two major factors being commodity prices and production yields. Commodity prices paid to rural producers can vary depending on the agricultural policies of their respective countries. Free trade countries, such as Australia and New Zealand are subject to the volatility of the world commodity markets to a greater extent than those farmers in protected or subsidised markets. In countries where rural production is protected or subsidised the annual income received by rural producers has been relatively stable. However, the high cost of agricultural protection is now being questioned, particularly in relation to the increasing economic costs of government services such as health, education and housing. When combined with the agricultural production limitations of climate, topography, chemical residues and disease issues, the impact of commodity prices on rural property income is crucial in the ability of rural producers to enter into or expand their holdings in agricultural land. These problems are then reflected in the volatility of the rural land capital returns and the investment performance of this property class. This paper will address the capital return performance of a major agricultural area and compare these returns on the basis of both location of land and land use. The comparison will be used to determine if location or actual land use has a greater influence on rural property capital returns. This performance analysis is based on over 35,000 rural sales transactions. These transactions cover all market based rural property transactions in New South Wales, Australia for the period January 1990 to December 2005. Correlation analysis and investment performance analysis has also been carried out to determine the possible relationships between location and land use and subsequent changes in rural land capital values.... [Show full abstract]
KeywordsAustralia; rural land; rural economics; rural land values; rural land use; rural land investment; investment performance; rural property prices; New South Wales
TypeConference Contribution - Published (Conference Paper)
Showing items related by title, author, creator and subject.
The study of rural change from a social scientific perspective: a literature review and annotated bibliography Mackay, Michael D.; Perkins, Harvey C.; Espiner, Stephen R. (Lincoln University. Department of Social Science, Parks, Recreation, Tourism and SportLincoln, Canterbury, 2009-07)This publication comprises a review of two decades of literature (1989-2009) on the social science of rural change. It was constructed as an aid to research on the changing nature of Central Otago, South Island, New Zealand, ...
Proceedings of the Rural Economy and Society Section of the Sociological Association of Aotearoa (N.Z.) Fairweather, John R. (Lincoln University. Agribusiness and Economics Research Unit., 1991-04)This Discussion Paper records the 14 papers presented in the Rural Economy and Society Section of the Sociological Association of Aotearoa (New Zealand) held at Lincoln University 7-9 December, 1990. The papers cover ...
Mulet Marquis, S.; Fairweather, John R. (Lincoln University. Agribusiness and Economics Research Unit.Lincoln, Canterbury, 2008-03)The first part of this report examines some changes in New Zealand rural population since 1881 and more recent demographic characteristics. It shows that during the twentieth century, the proportion of people living in ...