Estimation of Agricultural Lands Value Using the Hedonic Method: A Case Study in Orzouiye County

Land is one of the key resources in the agricultural sector. Estimation of the land actual price and its determinants are crucial for its proper management and agricultural development. Therefore, in this study, agricultural land value of Orzouiye County was estimated using the hedonic method. The required data are collected by 138 questionnaires and face to face interviews with farmers of Orzouiye County during 2013-2014. Results showed that the distance from the land to downtown (Baft City), the distance from the land to the main road and the land use percentages had negative and significant effect on agricultural land value of Orzouiye County, but the area under cultivation, the fertility and quality of the farm’s soil and investment amount in the land have positive and significant effect on the price of agricultural land. All together, the price of each hectare of agricultural land in Orzouiye County was estimated as 1412 million IRR.