The Study of the Influential Factors on Farmland Price－The Case of I-Lan County

With economy development, population increase and urbanization, the use of the farmland for agricultural cultivation purposes is supplanted for non-agriculture utilization. Especially, farmland priced is the cheapest for farming purposes comparing with other alternatives, and the level in valuation is influenced significantly by both of expected alternative usages and location. Meanwhile, it is worth paying attention to the effect of expected conversion use in farmland on farmland price. As farmland is expected to be converted for residential or farmhouse purposes, it will be priced with the consideration of conversion value which is higher than that limited for farming use. The objective of this study under the case of Yilan County is to analyze the impacts of residential-usage price on farmland price when the Agriculture Development Ordinance and the Farmhouse Construction in Farming Land Regulation are in effect. The reason for choosing Yilan County for investigation is due to differential urbanization around the county. Such differences may cause different valuation in residential prices and the frequencies in transactions in farmland. As a result, the influential factors on farmland prices of villages under different urbanization can be found. With the methodology of multiple regression, the data of transacted farmland prices in Yilan County is collected from the real estate appraiser system of Ministry of the Interior in Taiwan during the period of 2012 Q3-2015 Q2. The result is found that the degree of urbanization has significant impacts on farmland prices.