Overview

Original Research

EXTENDED APPROACH OF LAND EXPECTATION VALUE (LEV) TO CAPTURE UNEARNED INCREASES IN LAND VALUES: MICRO-EMPIRICAL EVIDENCE ON SUBOPTIMAL LAND IN SOUTH SUMATRA, INDONESIA

ERNI PURBIYANTI 1, FACHRURROZIE SJARKOWI 2, DESSY ADRIANI 3, and MIRZA ANTONI 4.

Vol 18, No 01 ( 2023 )   |  DOI: 10.17605/OSF.IO/X7FPR   |   Author Affiliation: Faculty of Agriculture, Sriwijaya University, Ogan Ilir Campus Indralaya South Sumatra, Indonesia 1,2,3,4.   |   Licensing: CC 4.0   |   Pg no: 1602-1614   |   Published on: 27-01-2023

Abstract

Suboptimal land has a great potential for agriculture. However, regional development demands competition for agricultural land use is increasing; no exception suboptimal of swamp. This study aims to calculate the land rent of paddy fields. The calculations of land rent are carried out in 2-scenarios, namely: 1) real calculations, based on the production produced by farmers; and 2) ideal calculations, based on the production recommended by the Agricultural Service. Both land rents were calculated based on both Richardian and Von Thunen approaches. The research findings recommend for 1) the expected value of land; and 2) the level of farmers’ welfare.

Keywords

land cover change; land expectation value; Richardian land rent; Von Thunen land rent; suboptimal land.