Factors affecting the price of agricultural land in Slovakia

Abstract

Land as a significant natural resource becomes an object of competition on the agricultural land market. The price of agricultural land plays an important role in its acquisition. The process of price formation is influenced by many factors. The aim of the paper is to identify the most significant of them by the econometric model applied on data from the Register of Offers of Agricultural Land. The most significant factors are proportion of the offered area on the total area of the plot and the location of agricultural land with the positive effect on the land price as well as the offered plot area and the distance of the offered plot from a district city with the negative impact on the land price. However, the verification of the correctness of this assumption remains questionable for the present as it is not resolved how to measure and quantify the landowner’s subjectivity.