process for small to mid-sized municipalities. Shifting patterns of land
use and the relative importance of factors affecting land values can be
evaluated and compared in the transitional area.
The primary objective of this study was to analyze the transitional
nature of the agricultural land market in a
rural-urban fringe and esti-
mate the impact of selected factors affecting the price for agricultural
land contiguous to a moderately sized city such as Dothan. Various
demand-related factors were expected to be the primary determinants
of agricultural land value in the rural-urban fringe, with develop-
ment/urbanization factors being a component of this set. Contributing
factors were grouped into locational,
physical, and sales characteris-
tics associated with specific properties in the study area.
Attempts were made to include only "bona fide" sales (market
transactions in which the price is derived in free and open negotiations
between a well-informed seller who is able, willing, and under no
compulsion to dispose of the property and a well-informed buyer who
is also able, willing, and under no compulsion
to buy the property in
question) of agricultural land. Other transactions, such as foreclosure
sales, tax sales, and sales between relatives, were excluded from the
data base.
The size of the tract and its location
and primary uses were other
key considerations for determining eligibility for the data base. The
primary focus of this study centered around the conversion of agricul-
tural land in transitional areas. Thus, the land already used for non-
agricultural purposes at the time of the sale was considered ineligible
and, therefore, was not included in the sample. Tracts which were less
than 4 acres in size were omitted because there is relatively no agricul-
tural demand for such a small acreage in this area. The 4-acre size lim-
it was based on the smallest tract purchased for agricultural uses, as
verified from responses provided in returned questionnaires.
Undeveloped property located in a residential subdivision or indus-
trial park at the time of sale was also considered ineligible for inclu-
sion because there would be little rational demand from the agricul-
tural sector for such property. The rationale for this specific criterion
is based on the fact that once these undeveloped tracts are classified as
predominately
residential or commercial, they are technically no long-
er considered feasible for agricultural production due to high values
initiated by the urban demand.
139
Analyses were conducted for the Dothan fringe land market and
the rural and urban components of this area. The rural market, which
included 101 observations located more than 8
miles from the central
business district, was highly agriculturally oriented. This area is not
included in the Dothan city limits and has undergone the same degree
of urbanization.
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