A study on farmland rental values determinants. Potentialities of micro data with an application of hedonic prices method

Abstract

The paper aims at isolating factors affecting farmland rents and estimating their effect using hedonic pricing model. Unlike the majority or similar analysis, based on Census aggregated data or surveys, we used a sample of microdata based on land rent contracts signed in the Province of Mantova over the period 2010-2014, matched with other territorial or census databases. We focused on the effect of farmland use on rent price, estimating their implicit values, i.e. the shadow prices. The research findings may help stakeholders and researchers interested in rental market dynamics, in particular at local level. Empirically grounded and transparent information on rental market may provide a new tool for contract negotiation among owners and tenants, improving, at the same time, farmers’ choices.