Valuation of Sistan Plain Agricultural Land Using Hedonic Pricing Method

Land is one of the most fundamental natural resources and plays a crucial role invarious sectors of the economy as a factor of production. Today, in addition to its primary role,land has also become an asset due to its limited supply and unique economic conditions. With theever-increasing population and diverse demands for this resource across various economic sectors,the issue of land scarcity and limitation has become more noticeable. Not having the ability totransfer and move, insignificant depreciation in the process of consumption and production, andmost importantly, the heterogeneity of different units of land, make it difficult to formulate thepattern of demand and supply of land. Therefore, it is not easy to estimate land supply and demandfunctions. In this research, land is considered as a heterogeneous commodity, and valuingagricultural land according to its unique characteristics is the aim of this study. Since land is oneof the most important resources in the agricultural sector, determining its real value can be veryimportant for land management, its more efficient use, and agricultural development. On the otherhand, it achieves the highest possible efficiency by optimizing scarce production factors such aslabor, tools, purchased inputs, and management ability. This study was conducted with the aim ofvaluing the agricultural lands of the Sistan Plain using the hedonic pricing method in 2022-2023.

For the valuation of agricultural land in the Sistan Plain, the villages ofZulfiqari, Rahdar and Kod were selected as samples. The reason for choosing these villages isaccess to river water and wells, which are valuable due to the cultivation of the land. In this study,the hedonic pricing method was used to estimate the price of agricultural land in Zabol City. Forthis purpose, in 1400-1401, 99 questionnaires were completed in the schools of Rahdar, Kod andZulfaqari villages of Zabul city using the simple random sampling method. After completing thequestionnaires, the simple logit model was estimated using Eviews7 software, and SPSS22software was also used to estimate the statistical descriptions including the mean, minimum andmaximum variables. In this research, the effect of 15 variables on the price of one hectare ofagricultural land was investigated using the regression estimation method.

The results of linear logarithm model estimation showed that the variablesof ease of access to water, access to city water, ability to replant and distance to the main road had apositive effect on the price of each hectare of agricultural land . The agricultural land in the mentionedregion benefits from less environmental pollution, limited urban and industrial development nearmain roads compared to other parts of the country, and the presence of essential facilities andinfrastructure like water, electricity, and telephone, as well as easier transportation. These factorshave positively influenced the price of agricultural land. The desire to change land use is also veryhigh due to the mentioned conditions of low agricultural profit in the region and drought.

According to the topology of the area and the smoothness and lack of properdrainage, in some cases, the price of agricultural land is affected by the presence or absence ofthis factor. The percentage of the land under cultivation confirms the availability of water andthe quality and profitability of the product for the land owner, which will also have a positiveeffect on the price of the land. On the other hand, the owner's desire to change agricultural use,which is a less profitable activity compared to non-agricultural uses, increases the price of land.The ability to change the use refers to the existence of the necessary permits, access to therequired facilities and infrastructure, and the profitability of this case. Meanwhile, the onlything that has a negative effect on the price of agricultural land is the distance from the road,the more the distance from the road, the lower the land price.