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 REFERENCE PRICES to un ir riga ted l and 5 3 a tdistri tl evel PRODUCTIVE A PRE CIATE DCO EFF ICIENT (in fr astuctu res, c omu ni catio ns, s ocia ls erv ic es, …) BASE REFERENCE PRI CES to 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 RENTING PRI CES to ea c h ap tit ude 3 7 .930 productivas at parcel leve l N ( YI ELD j =RR P 075.0/ ) ( ∑ ) × ACC 1( +i ) n n 0= COEFFICIENTS LAND VALUE to plots be lon g t o Bant ega l 1 3.000.000 at parcel 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 REFERENCE PRICES to un ir riga ted l and 5 3 a tdistri tl evel A PRE CIATE DCO EFF ICIENT (in fr astuctu res, c omu ni catio ns, s ocia ls erv ic es, …) DISTRICT BASE REFERENCE PRI CES to unir ri g ated lan d 3.793 at par rish level APT ITUD E COE FFICIE NT (irr igate d inf rastu ctu re s, lig neous c ro ps, …) NET YIELDS REFERENCE RENTING PRI CES to ea c h ap tit ude 3 7 .930 at parcel leve l N ( YI ELD j =RR P 075.0/ ) ( ∑ ) × ACC 1( +i ) n n 0= LAND VALUE to plots be lon g t o Bant ega l 1 3.000.000 at parcel 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 IVE ORIENTAT ION CROP Y IELDS GROUND SURVE 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 D COE FFICI ENT (i nfrast uctures, c omu n ic ations , DISTRICTS s ocia ls 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 TITUDE COE FFICI ENT ( ir rig ated i nfrast uctures ,li 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 E t 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 D COE FFICI ENT (i nfrast uctures, c omu n ic ations , GROUND s ocia ls e rvices ,… ) BASE RE FEREN CE P RIC ES to uni rrigat ed l and 3 .79 3 at parrish level GALICIAN average for unwatered land A P TITUDE COE FFICI ENT ( ir rig ated i nfrast uctures ,li 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 E t 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 D COE FFICI ENT (i nfrast uctures, c omu n ic ations , s ocia ls e rvices ,… ) BASE RE FEREN CE P RIC ES to uni rrigat ed l and 3 .79 3 at parrish level A P TITUDE COE FFICI ENT ( ir rig ated i nfrast uctures ,li 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 E t 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 TIVE OR IEN TAT ION CROP YIELDS GR OUND SU 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 IATED COE 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 at pa rr ish lev el CRITERION APT ITU DE COE F FICIENT ( irr igate d in fras tu ctu res ,li 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 LTURAL R EFERENC E PRI CES to uni rrigat ed land 5 3 REFERENCE PRIZES at distrit l evel DISTRICTS unirrigated land yields A PRE C IATED COE FFICIEN T (in fr astu ct ures, c o munic ati ons , (7,5%) soci al serv ic es, … ) B ASE RE 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 d in fras tu ctu res ,li 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.