Agriculture Land Price Setting Systems, and Possible Directions for Their Updating

Abstract

The aim of this article is to assess the effect of the applied land valuation system on the price of land, and as a consequence of the implied links to compare the valuation of soil units in Slovakia and the Czech Republic. In order to fulfil this objective, an econometric approach was chosen in the form of a hedonic price model, whereby the heteroscedastic corrected linear regression model was specifically applied. The estimated model shows a very high explanatory ability, together with a high parametric significance for most fictitious variables (land characteristics), and at the same time also fulfils the theoretical and logical consistency of general assumptions. From the results, it is evident that, in the case of Slovakia, ESEU [evaluated soil ecological unit] valuation is affected primarily by the climatic region and the main soil unit. When comparing the results of the effect of individual input factors on the price of land in the Czech Republic and Slovakia, it can be stated that the results are slightly different in the effect of certain factors. The characteristics of soils located in warm climatic regions with a valuable soil type of chernozem and low slope are significant and positively intensive factors.