Rondhi, M.; Pratiwi, P.A.; Handini, V.T.; Sunartomo, A.F.; Budiman, S.A. Agricultural Land Conversion, Land Economic Value, and Sustainable Agriculture: A Case Study in East Java, Indonesia. Land2018, 7, 148.
Rondhi, M.; Pratiwi, P.A.; Handini, V.T.; Sunartomo, A.F.; Budiman, S.A. Agricultural Land Conversion, Land Economic Value, and Sustainable Agriculture: A Case Study in East Java, Indonesia. Land 2018, 7, 148.
Rondhi, M.; Pratiwi, P.A.; Handini, V.T.; Sunartomo, A.F.; Budiman, S.A. Agricultural Land Conversion, Land Economic Value, and Sustainable Agriculture: A Case Study in East Java, Indonesia. Land2018, 7, 148.
Rondhi, M.; Pratiwi, P.A.; Handini, V.T.; Sunartomo, A.F.; Budiman, S.A. Agricultural Land Conversion, Land Economic Value, and Sustainable Agriculture: A Case Study in East Java, Indonesia. Land 2018, 7, 148.
Abstract
Agricultural land conversion (ALC) is an incentive–driven process. In this paper we further investigate the inter–relationship between land economic value (LEV) and ALC. To achieve this goal, we calculated LEV for agricultural and non-agricultural (housing) uses in two areas in East Java, Indonesia. The first area represents suburban agriculture, facing rapid urbanization and experiencing high rate of ALC. The second area represents rural agriculture with zero ALC. Furthermore, we identified factors affecting LEV in both areas for both uses. The resut of this study show that agricultural land yielded higher economic benefit in rural area. Conversely, comparing to agricultural land, housing creates 7 times higher value in urban area. Moreover, agricultural land shown to create higher profit after converted. Ironically, the similar comparison doesn’t exists in rural area. Agricultural land only yielded 19% more value, indicate that agricultural land can be easily converted. It is also proven by the growing number of new urban core in the periphery area. There are several factors affecting land economic value, for agricultural use, soil fertility, accessibility, and cropping pattern are important variables. While accessibility and location in urban area increases land value for housing.
Keywords
agricultural land conversion; land economic value; urbanization; land rent
Subject
Social Sciences, Geography, Planning and Development
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
