Agricultural Land Markets: A Systematic Literature Review on the Factors Affecting Land Prices

Abstract

The UN 2030 Agenda implicitly recognizes the crucial role of the agricultural land market in several Sustainable Development Goals, particularly those related to food security, environmental sustainability, and economic growth. However, the dynamics of agricultural land prices are highly complex, shaped by multiple economic, social, and environmental factors, making it essential to conduct a systematic analysis of the mechanisms driving their variability. This study aimed to identify the key factors influencing agricultural land prices, both at the microlevel (parcel) and the macroeconomic level (country). To achieve this goal, a systematic literature review was conducted using the PRISMA 2020 guidelines. The analysis highlighted how intrinsic factors (soil fertility, access to water resources, plot size, and location) and extrinsic factors (urban pressure, fiscal policies, demographic changes, and climate variations) interact in the determination of land prices. The results suggest that the growing demand for agricultural land, combined with competition from other land uses, is contributing to a significant variation in market values, with implications for the sustainability of the agricultural sector. This study provides a framework for investors, policymakers, and researchers, highlighting the need for more transparent land policies, incentives for sustainable land management, and tools to counter land price speculation.