REFERENCE RENTING PRICES AND LAND VALUES FOR PARCELS REGISTERED IN THE LAND BANK OF GALICIA
José Marcial Díaz Manso
Workshop on land tenure and land consolidation
Santiago de Compostela, February 9–11 of 2009
OBJECTIVES
• Establish the top prices for the owners and the minimun prices for the tenant of land bank plots. • Establish reference prices for the areas where there are not market prices. • Determine land values of the plots that belong to Bantegal. PRODUCTIVE ORIENTATION CROP YIELDS GROUND SURVEYS METODOLOGY
AGRICULTURAL REFERENCE PRICES to unirrigated land 53
at distrit level
APRECIATED COEFFICIENT (infrastuctures, comunications, social services, …)
BASE REFERENCE PRICES to unirrigated land 3.793
at parrish level
APTITUDE COEFFICIENT (irrigated infrastuctures, ligneous crops, …)
REFERENCE RENTING PRICES (RRP) to each aptitude 37.930
at parcel level
N (YIELDj = RRP .0/ 075 ) ( )× ACC ∑ n n=0 1( + i)
LAND VALUE to plots belongs to Bantegal 13.000.000
at parcel level
P ROD UCT IVE OR IE NTA TION C R OP Y IE LDS
G ROU ND S U RVE YS
AGRICUL TURAL REFERENCEPRICES toun ir riga tedl and 5 3 adistri t l t evel PRODUCTIVE A PRE CIATE COD EFF ICIENT (in fr astuctu res, c omu ni catio ns, s ocia ls erv ic es, …)
BASEREFERENCE PRI CESto unir ri g ated lan d 3.793 Orientacións
at par ris h le vel
APT ITUD E COE FFICIE NT (irr igate d inf rastu ctu re s, lig neous c ro ps, …) ORIENTATION
REFERENCE RENTINGPRI CESto ea c hap tit ude 3 7 .930 productivas atparcel leve l
N ( YI ELD j =RR P 075.0/ ) ( ∑ ) × ACC 1( +i ) n n 0= COEFFICIENTS LANDVALUE toplots be lon gt o Bant ega l 1 3.000.000
atparcel leve l
FIVE PRODUCTIVE ORIENTATIONS WERE DEFINED :
• 1.- Forage crops • 2.- Horticultural crops • 3.- Tubercles • 4.- Grain cereals • 5.- Ligneous crops
THE UNWATERED LAND OF EACH DISTRICT WAS DESCRIED DEPENDING ON THE AREA OCCUPIED BY THIS 5 CATEGORIES :
DISTRICT i = f ( x % forage, y % horticultural, z % tubercles, t % grain cereals, w % ligneous ) P ROD UCT IVE OR IE NTA TION C R OP Y IE LDS
G ROU ND S U RVE YS
AGRICUL TURAL REFERENCEPRICES toun ir riga tedl and 5 3
adistri t l t evel
A PRE CIATE COD EFF ICIENT (in fr astuctu res, c omu ni catio ns, s ocia ls erv ic es, …) DISTRICT
BASEREFERENCE PRI CESto unir ri g ated lan d 3.793
atpar rish level
APT ITUD E COE FFICIE NT (irr igate d inf rastu ctu re s, lig neous c ro ps, …) NET YIELDS REFERENCE RENTINGPRI CESto ea c hap tit ude 3 7 .930
atparcel leve l
N ( YI ELD j =RR P 075.0/ ) ( ∑ ) × ACC 1( +i ) n n 0=
LANDVALUE toplots be lon gt o Bant ega l 1 3.000.000
atparcel leve l TO DETERMINE THE DISTRICT NET YIELDS OF UNWATERED LAND IT WAS USED THE MOST REPRESENTATIVE CROP FOR EACH OF THE 5 BASE PRODUCTIVE ORIENTATION WITH THEIR RESPECTIVES YIELDS (an average)
Produtive Orientation Reference crop Net yields (€ / ha)
• x: % Farage crops forage corn 1.119 • y: % Tubercle patato 3.505 • z: % Grain cereals wheat 412 • t: % Horticultural crops cabbage 8.426 • w: % Vineyard vineyard 4.500
District net yields :
(1.119 * x % ) + (3.505 * y %) + (412 * z %) + (8.426 * t %) + (4.500 * w %)
P RODUCT IVEORIENTAT ION CROP Y IELDS GROUNDSURVE Y S
A GRI CULTU RAL REFER ENCE PRI CES to unirrigated land 5 3 at dist rit level unirrigated DISTRICT
A P RECI ATE DCOE FFICI ENT (i nfrast uctures,c omu n ic ations , DISTRICTS s ocias l e rvices… , ) land yields
BASE RE FEREN CE P RIC ES to uni rrigat ed l and 3 .79 3 a t p arri sh lev el A BARCALA 2.623 NET YIELDS
A P TITUDECOE FFICI ENT ( ir rig atedi nfrast ucturesli , gne ous c rop s,…) A CORUÑA 2.720
RE FERENC E R ENTI NG PRI CES to each apt it ude 3 7 .93 0 ARZÚA 2.535 at parcel l evel (euros/ha)
N = BARBANZA 2.621 ( (Y IELDj RRP .0/ 075 ))× A CC ∑= + n n 0 1( i) BERGANTIÑOS 2.689
L AND VALU Et o pl ots bel ong to Bant egal 1 3 .00 0 .00 0 at parcel l evel BETANZOS 2.884 EUME 2.835 FERROL 2.774 FISTERRA 2.623 MUROS 2.674 NOIA 2.714 O SAR 2.705 ORDES 2.611 ORTEGAL 2.901 SANTIAGO 2.722 TERRA DE MELIDE 2.623 TERRA DE SONEIRA 2.670 XALLAS 2.611 A FONSAGRADA 2.641 A MARIÑA CENTRAL 2.884 A MARIÑA OCCIDENTAL 2.918 A MARIÑA ORIENTAL 2.935 A ULLOA 2.740 CHANTADA 2.774 LUGO 2.606 MEIRA 2.618 OS ANCARES 2.654 QUIROGA 2.904 SARRIA 2.658 TERRA CHA 2.623 TERRA DE LEMOS 2.802 ALLARIZ-MACEDA 2.581 A LIMIA 2.713 BAIXA LIMIA 2.485 O CARBALLIÑO 2.838 O RIBEIRO 2.894 OURENSE 2.911 TERRA DE CALDELAS 2.867 TERRA DE CELANOVA 2.744 TERRA DE TRIVES 2.614 VALDEORRAS 2.838 VERÍN 2.915 A PARADANTA 2.774 CALDAS 2.806 DEZA 2.670 O SALNÉS 2.957 O MORRAZO 2.829 O CONDADO 2.843 O BAIXO MIÑO 2.882 PONTEVEDRA 2.808 TABEIRÓS-T.DE MONTES 2.571 VIGO 2.838 PRODUCTIVE ORIENTATION CROP YIELDS GROUND SURVEYS
A GRI CULTU RAL REFER ENCE PRI CES to unirrigated land 5 3
at dist rit level
A P RECI ATE DCOE FFICI ENT (i nfrast uctures,c omu n ic ations , GROUND s ocias l e rvices… , )
BASERE FEREN CEP RIC ES to uni rrigat ed l and 3 .79 3 at parrish level GALICIAN average for unwatered land
A P TITUDECOE FFICI ENT ( ir rig atedi nfrast ucturesli , gne ous SURVEY c rop s,…)
RE FERENC E R ENTI NG PRI CES to each apt it ude 3 7 .93 0 at parcel l evel
N = ( (Y IELDj RRP .0/ 075 ))× A CC ∑ n n =0 1( + i)
L AND VALU Et o pl ots bel ong to Bant egal 1 3 .00 0 .00 0 213 euros/ha at parcel l evel
2.200 inquiries
PRODUCTIVE ORIENTATION CROP YIELDS GROUND SURVEYS
A GRI CULTU RAL REFER ENCE PRI CES to unirrigated land 5 3
at dist rit level
A P RECI ATE DCOE FFICI ENT (i nfrast uctures,c omu n ic ations , s ocias l e rvices… , )
BASERE FEREN CEP RIC ES to uni rrigat ed l and 3 .79 3 at parrish level
A P TITUDECOE FFICI ENT ( ir rig atedi nfrast ucturesli , gne ous c rop s,…) CONDITIONS
RE FERENC E R ENTI NG PRI CES to each apt it ude 3 7 .93 0 at parcel l evel
N = ( (Y IELDj RRP .0/ 075 ))× A CC ∑ n n =0 1( + i)
L AND VALU Et o pl ots bel ong to Bant egal 1 3 .00 0 .00 0 at parcel l evel
• THE PRICES SHOULD BE SUITABLE BY THE AGRICULTURAL DISTRICT YIELDS (IT MUST BE A PERCENTAGE OF THIS).
• THE PRICES SHOULD TAKE INTO ACCOUNT WHAT MARKET IS SAYING. P ROD U C TIVEOR IEN TAT ION CROPYIELDS GR OUNDSU R VEY S
AG RICU LTURAL R EFERENC E PRI CES to uni rrigat ed land 5 3 at distrit l evel
A PRE C IATEDCOE FFICIEN T (in fr astu ct ures,c o munic ati ons , soci al serv ic es,… )
B ASE RE FERENCE PRI CES to uni rrigated land 3 .79 3 atpa rr ish lev el CRITERION
APT ITU DE COE F FICIENT ( irr igate din fras tu ctu resli , gne ous cr ops…) ,
REFERENC E RE NTING PRI CES to each aptit ude 37.93 0 at parcel level
N = ( (YIELDj RRP 0/ 07. 5 ))× ACC ∑ n n = 0 1( + i)
LAND VALUE to plots belong to Bantegal 1 3.0 00.00 0 at parcel level The galician price average obtained by ground surveys should be as close as possible to galician average price obtained as a percentage of district net yields.
The galician average, when it is applied a 7,5 % at districts net yields, is 206 euros/ha , the nearest to the galician price average obtained from ground surveys : 213 euros/ha .
AGRICULTURAL REFERENCE PRICES to unwatered land at district level
PRODUCTIVE ORIENTATION CROP YIELDS GROUND SURVEYS AGRONOMIC
AG RICU LTURALR EFERENC EPRI CES to uni rrigat ed land 5 3 REFERENCE PRIZES at distrit l evel DISTRICTS unirrigated land yields
A PRE C IATEDCOE FFICIEN T (in fr astu ct ures,c o munic ati ons , (7,5%) soci al serv ic es,… )
B ASERE FERENCE PRI CES to uni rrigated land 3 .7 9 3 A BARCALA 2.623 197 AGRICULTURAL at parrish level
APT ITU DE COE F FICIENT A CORUÑA 2.720 204 ( irr igate din fras tu ctu resli , gne ous cr ops…) , ARZÚA 2.535 190 REFERENC E RE NTING PRI CES to each aptit ude 37.9 3 0 at parcel level BARBANZA 2.621 197 REFERENCE N = ( (YIELDj RRP 0/ 07. 5 ))× ACC ∑= + n n 0 1( i) BERGANTIÑOS 2.689 202
LAND VALUE to plots belong to Bantegal 1 3. 0 00.0 0 0 at parcel level BETANZOS 2.884 216 EUME 2.835 213 PRICES FERROL 2.774 208 FISTERRA 2.623 197 MUROS 2.674 201 NOIA 2.714 204 O SAR 2.705 203 ORDES 2.611 196 ORTEGAL 2.901 218 SANTIAGO 2.722 204 TERRA DE MELIDE 2.623 197 TERRA DE SONEIRA 2.670 200 XALLAS 2.611 196 A FONSAGRADA 2.641 198 A MARIÑA CENTRAL 2.884 216 A MARIÑA OCCIDENTAL 2.918 219 A MARIÑA ORIENTAL 2.935 220 A ULLOA 2.740 205 CHANTADA 2.774 208 LUGO 2.606 195 MEIRA 2.618 196 OS ANCARES 2.654 199 QUIROGA 2.904 218 SARRIA 2.658 199 TERRA CHA 2.623 197 TERRA DE LEMOS 2.802 210 ALLARIZ-MACEDA 2.581 194 A LIMIA 2.713 203 BAIXA LIMIA 2.485 186 O CARBALLIÑO 2.838 213 O RIBEIRO 2.894 217 OURENSE 2.911 218 TERRA DE CALDELAS 2.867 215 TERRA DE CELANOVA 2.744 206 TERRA DE TRIVES 2.614 196 VALDEORRAS 2.838 213 VERÍN 2.915 219 A PARADANTA 2.774 208 CALDAS 2.806 210 DEZA 2.670 200 O SALNÉS 2.957 222 O MORRAZO 2.829 212 O CONDADO 2.843 213 O BAIXO MIÑO 2.882 216 PONTEVEDRA 2.808 211 TABEIRÓS-T.DE MONTES 2.571 193 VIGO 2.838 213
AVERAGE 206 P R ODUC T IVE ORIE NTA TION C R OPYI ELD S GR OU N D SUR V E YS
AG RIC ULTURAL REFERE NCE PRIC ES t ounirr igated land 5 3
atdistrit level
A P R ECIAT E D C OEF F ICIEN T (i nfrast uctures,comu ni catio n s, s ocias l ervi ces,…)
BASER EFEREN CEPR ICES t o unirrigatedl and 3 .79 3 APRECIATED COEFFICIENT
a t par rish l eve l
A P TITUD ECOEFF ICIEN T (ir rig atedi nfrastuc tures, lig neo us c rops, …)
REFERE NCE RENTI NG PRIC ES t oeach apt itude 3 7 .93 0 atparcel level
N = ( (YIEL Dj R RP .0/ 075 ))× ACC ∑ n n = 0 1( +i )
LANDVALU E t oplot sbelong toB ant egal 13. 000 .00 0 atparcel level
• Depending on the infraestructure level and communication development, proximity to population centers, acces to social, landscape, etc.
• Based on the prices used by the Galician Economy Department in their taxation activity at parrish level.
• HOW WE HAVE USED THESE PRICES ? A relativation procedure was done converting these prices in a parish coefficients which affect to the agricultural reference prices (at district level) increasing or decreasing its values not more than a 20 %.
BASE REFERENCE PRICES to unirrigated land at parishs level
PRODUCT IVEORIENTAT ION CROP YIE LDS GROUNDSURVE Y S
53 AGR ICU LTURA L RE FEREN CE PRI CESt o uni rrigat ed land at distrit lev el
A PRE CIAT E DCOE FFICI ENT (infr astuc tures,comu n ic ations , soc ialse rvices… , ) “APTITUDE” COEFFICIENT
BA SE REFER ENC E PR IC ES to unirrigated land 3.793 at par ri sh level
APT ITUDECOE FFICI E NT (i rri gatedinfr astuc tures,li gne ous c rop s,…)
37.930 R EFERE NCE RE NTIN G PRI CES to each apt itude at parc el l evel
N = ( Y( IELDj R RP 0/ 07. 5 ))× A CC ∑= + n n 0 1( i) •The land cover information of SIGPAC cartography at parcel level was 13.000.000 LAN D V ALUE to plot s bel ong to B antegal at parc el l evel used to weight the BASE REFERENCE PRICES to unirrigated land at parish level obtaining the REFERENCE RENTING PRICES , at parcel level.
NUMBER SITEGAL/sigpac AGRICULTURAL CLASSES APTITUDE COEFFICIENT
1 HORTICULTURAL 2,5
2 PREFERENT VINEYARD 3,0
3 NON PREFERENT VINEYARD 1,5
4 FRUIT TREES 1,1
5 IRRIGATED LAND 2,3
6 UNIRRIGATED LAND 1,0
7 MEADOW AND TEMPORAL MEADOWS 0,9
8 GRASSLAND 0,2
9 FOREST 0,2
10 IMPRODUCTIVE 0,1
REFERENCE RENTING PRICES (RRP) at parcel level PRODUCTIVE ORIENTATION CROP YIELDS GROUND SURVEYS
53 AGR ICU LTURA LRE FEREN CE PRI CESt o uni rrigat ed land at distrit lev el
A PRE CIAT E DCOE FFICI ENT (infr astuc tures,comu n ic ations , soc ialse rvices… , )
BA SE REFER ENC EPR IC ES to unirrigated land 3.793 at par ri sh level LAND VALUE COEFFICIENT APT ITUDECOE FFICI E NT (i rri gatedinfr astuc tures,li gne ous c rop s,…)
37.930 R EFERE NCE RE NTIN G PRI CES to each apt itude at parc el l evel
N = ( Y( IELDj R RP 0/ 07. 5 ))× A CC ∑ n n =0 1( + i)
13.000.000 LAN D V ALUE to plot s bel ong to B antegal at parc el l evel
N = (YIELD RRP .0/ 075 ) × (∑ n ) ACC n=0 1( + i)
LV : Land Value RRP : Reference renting price i : Capitalization rate N : Capitalization period ACC : Agricultural condittion coefficient (0.7-1)
LAND VALUE (LV) of parcels that belong to Bantegal
CONCLUSIONS
• FLEXIBLE • ADAPTABLE • ROBUST • VARIABILITY and
• IMPROBABLE Thank you for your attention