Soil CRC and NSW Trade & Investment’s Research Attraction and Acceleration Program, $60,000
Professor Mark Morrison, Professor Eddie Oczkowski & Dr Penny Cooke
This project sits under the Soils CRC’s Program One – Investing in high performance soils, led by Associate Professor Catherine Allan.
The goal of this project, “How better soil management could affect property prices?”, was to complete the first phase of a stream of work that seeks to understand how soil management practices influence property prices, so farmers can better understand the pay-off from investments in improving soil management. The eventual goal is to develop a hedonic pricing model identifing how on farm property characteristics and other external factors determine a property’s value or price. This model will eventually be used to identify the value of soil stewardship practices.
A significant challenge when conducting a hedonic pricing analysis is achieving access to the appropriate data. This phase one study sought to identify what data is needed, what data was available through secondary sources, and what data could be collected through primary data collection for a future hedonic pricing analysis.
Data was determined through a literature review and interviews with farmers and property agents to better understand the factors influencing farmers when purchasing properties, particularly with respect to soil and soil management practices
Data was identified through a review of public and privately available soil feature and soil management databases and GIS layers, and property sale prices databases across Australia.
Morrison, M., Oczkowski, E., Cooke, P., Agbola, F. & Hatton MacDonald, D. (2019) Hedonic Pricing of On-Farm Soil Management - Phase 1. Report for Soil CRC.
This project will provide a better understanding of information needs and availability for completing a hedonic pricing analysis to identify how soil management practices may influence property prices, which will indicate the additional pay-off from investment in improved soil practices. It will also provide qualitative insight into how Australian farmers and other landholders currently assess soil quality and soil management practices when purchasing properties.
Professor Mark Morrison Email
Dr Penny Cooke Email