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Resources in Agriculture: Land

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Economics for Agriculture
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Abstract

Land bears an obvious significance to any study of agriculture and the rural economy. Its physical characteristics largely govern what farming activities can be carried on and, in turn, its appearance is affected by farming. The ownership of land is highly influential in determining who may use the land for farming and other purposes, which again has environmental and social consequences for the countryside. Land is an important asset in the business of farming and to the wealth position of farmers. Land ownership is associated with social and political power, even in an industrial society like the UK.

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Notes

  1. EC (1981) Factors influencing ownership, tenancy, mobility and use of farmland in the United Kingdom Information on Agriculture No. 74 (Luxembourg).

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  4. There were earlier Acts, but the 1947 Town and Country Planning Act is usually regarded as marking the start of effective control: see Blunden, J. and Curry, N. (eds) (1985) The Countryside Handbook (London: Croom Helm/Open University).

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  8. The Land Registry in England and Wales is incapable of supplying useful information because of its incompleteness and the nature of the information collected; a broadly similar situation exists in Scotland. The Northfield Committee recommended that a more suitable and effective land registry be established. Northfield (1979), Report of the Committee of Inquiry into the Aquisition and Occupancy of Agricultural Land Cmnd. 7599 (London: HMSO).

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  10. Northfield (1979) op. cit., and

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  18. National parks occupy some 9 per cent of the total area of England and Wales, AONB 10 per cent: the SSSI form 5.3 per cent of GB, but these sites are in part located in NPs and AONB. Taking into account other areas where restrictions apply (e.g. MOD land) it has been estimated that effective control applies to 17 per cent of GB (Green, B. H. (1986) ‘Controlling ecosystems for amenity’ in Bradshaw, A. D. Goode, D. A. and Thorpe, E. (eds) Ecology and Design in Landscape (Oxford: Blackwell).

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  22. Based on Higgins, J. (1979) Irish Journal of Agricultural Economics and Rural Sociology7:2, 127–148.

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  25. This formula can also be used to calculate the maximum price an investor could afford to pay for a piece of land, given the amount of rent it earns and the rate of return he requires on his investment. Part of the rent would be absorbed by the costs of estate administration (maintenance of buildings, insurance, management and statutory charges). These costs are thought typically to consume between 30 and 50 per cent of the gross rent ADAS (1976) Expenses of agricultural land ownership in England and Wales, Technical Report 20/9 (Pinner: MAFF).

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  26. Hill, B. (1985) op. cit.

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© 1987 Berkeley Hill and Derek Ray

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Hill, B., Ray, D. (1987). Resources in Agriculture: Land. In: Economics for Agriculture. Palgrave, London. https://doi.org/10.1007/978-1-349-18782-9_6

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