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Land for food cultivation: is price a barrier to expansion?

Khalid, Haniza (2011) Land for food cultivation: is price a barrier to expansion? In: Conference on Asian Food Security (ICAFS) 'Feeding Asia in the 21st Century: Building Urban-Rural Alliances', 10 - 12 August 2011, Singapore. (Unpublished)

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Abstract

With increasing development speculation involving farmland, total area devoted to food cultivation continues to fall, or is expected to be sold at a higher price per hectare than before. This paper compares price of land cultivated with paddy relative to other crops and proceeds to examine some unique market and institutional features of the paddy land market. A hedonic price function is estimated using land sales data (n=2222) of five types of farmland namely paddy, rubber, vacant and oil palm covering four states in the Central West coast of Peninsular Malaysia in a period of 7 years. Results show that the marginal values of land attributes included in the model (road frontage, proximity to urban centres, population growth rates, land restrictions and year of sale) vary considerably across the different categories. Mean predicted paddy land price is the lowest. The relatively cheap price and various forms of government suppost does not appear to promote expansion of paddy hectarage. Paddy farming continues to be plagued by problems related to low profit margins (low levels of re-investment), inefficient organisation of farmers and uneconomic land holdings.

Item Type: Conference or Workshop Item (Full Paper)
Additional Information: 3350/3538
Uncontrolled Keywords: hedonic price model, spatial econometrics, agricultural land price
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD101 Land use
H Social Sciences > HD Industries. Land use. Labor > HD1401 Agriculture
H Social Sciences > HD Industries. Land use. Labor > HD72 Economic growth, development, planning
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User: Dr. Haniza Khalid
Date Deposited: 17 Oct 2011 11:04
Last Modified: 11 Feb 2012 10:15
URI: http://irep.iium.edu.my/id/eprint/3538

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