THE ROLE OF GROUND RENT IN ESTABLISHING THE AGRICULTURAL LAND PRICE

The present paper aims to demonstrate the role that ground rent has in establishing the agricultural land price. In order to be able to prove the connection between the ground rent and the agricultural land price, there are submitted to debate indicators that are part of ground rent such as the positioning of the land, the distance between the land and the access roads and water source, the intrinsic qualities of the land soil, the type of land and the manner of exploitation. The debate is intended to show how and in what manner the indicators part of ground rent may influence the price of an agricultural land. The final purpose of this study is to prove that a justified land price may contribute to encourage the agricultural land transactions and therefore to develop the land market. To fulfil the purpose of this paper it is necessary to understand what land ground means, why it is important the land price and how can the agricultural land price influence the agricultural land market and the development of the agriculture overall. The main methods utilized are collecting, analyze and interpreting data and information from the specialized literature. The conclusions formulated at the end of the study allow seeing the influence of ground rent on agricultural land price, the influence of the agricultural land price on agricultural land market and the influence of agricultural land market on the development of the agriculture.