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    Farmers’ perceived cost of land use restrictions: A simulated purchasing decision using discrete choice experiments2015

    LIZIN S., SCHREURS E., VAN PASSEL S.Journaux et Revues (scientifiques)

    agriculture / aquaculture, analyse conjointe / dichotomique, compensation, consentement à recevoir, conservation, sols

    Land Use Policy
    Volume 46, July 2015, Pages 115–124


    Highlights

    • We use choice experiments to simulate a hypothetical farmland purchasing situation.
    • We investigate the effect of land use restrictions on farmers’ preferences.
    • We calculate farmers’ perceived cost of farmland restrictions.
    • We find a yearly fixed costs of about 2300 €/ha for crop restrictions.
    • 2500 €/ha for land usage restrictions and 3500 €/ha for fertilizing restrictions.

    Abstract

    This paper reports on the findings from discrete choice experiments designed to estimate farmers’ perceived costs of land use restrictions, i.e. crop restrictions, additional fertilizing restrictions, and usage restrictions, as opposed to having no such restrictions. To this end, hypothetical land purchasing decisions were simulated based on the information about productivity, lot size, distance to other land, driving time to home, land use restrictions, and price. Farmers from the Campine area (Belgium) were invited to participate in the survey as the agricultural land in this region still faces the effects of historical heavy metal contamination resulting in crop restrictions. For identical pieces of land, we estimate the perceived cost, calculated as a change in the consumer surplus due to having a land use restriction, to be about 46,000 €/ha for the crop restriction, 50,000 €/ha for the usage restriction, and 70,000 €/ha for the fertilizing restrictions. Assuming this cost to represent a perpetuity, then with a discount rate of 5% the yearly fixed costs respectively equal about 2300 €/ha, 2500 €/ha, and 3500 €/ha.
     

    http://www.sciencedirect.com/science/article/pii/S0264837715000459

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