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Land economics 1 BRE 203  Land economics “Is a social science that deals with those problems in which social conduct is strategically affected by the physical, locational or property attributes of whole surface units”. (Salter,1942) It is concerned with our economic us...

Land economics 1 BRE 203  Land economics “Is a social science that deals with those problems in which social conduct is strategically affected by the physical, locational or property attributes of whole surface units”. (Salter,1942) It is concerned with our economic use of the surface resources of the earth and the physical and biological, economic and technological and institutional factors that condition and control our use of these resources 2  Land Economics This is the sub-discipline of economics that deals with: 1. land and land markets 2.The allocation of scarce land resources among alternative and competitive ends 3.Land economists are interested in the processes of land allocation 3  Land economics Dual process of land allocation 1. Private owners or developers seek to allocate land resources in a manner that will attain their objectives Objectives maybe economic or non-economic 2. Public regulatory bodies regulate and direct allocation of land resources in a manner that will attain society’s objectives (Which maybe economic or non-economic) 4  Land economics The existence of a dual process – what we may call developers and planners – leads to conflict. The conflict and its resolution is a major theme in land economics. Land economics deals with a problems of an economic nature. For an economic problem to exist, the relevant good or resource must be scarce. 5  Land economics Anything that is both desired and scarce will command a price. This price is set by some types of economic forces. These are market forces – demand and supply. Land economics uses the principle of demand and supply as they relate to land as a factor of production. It also analyses: 1. what influences the cost of houses. 2. The impact of economic forces on land values, land uses and land transactions. 3. It studies land and real property as a commodity for sale. 6  Land economics It is seen as an economic analysis applied to problems of land use, rent theory, land evaluation and land conservation. 7  Land economics Has a three fold context. This framework involves the impacts that they have on private and public decisions to land use. Together they set the limits concerning what individuals, groups and govts can accomplish in their dev. Utilization and conservation of land resources. 1. Technological and economic considerations 2. Physical and Biological factors 3. Institutional Arrangements 8 The Economic Environment and Technological framework 10  Economic contd. The graph depicts the tradeoff of location & accessibility for retail facilities in the city. Retail uses do not attach the same importance to central city location as do office space users. The competition for land uses is reflected at A. where the dominant use shifts to retail activities. 11  Economic cont. Financing terms and practices are also important in the understanding of an area’s economic environment. So are rent delinquencies and availability of property finance Property maintenance is both a function of the economic environment and the physical one. 12  The physical and biological environment/framework Concerned with the natural environment man lives in and the nature and characteristics of the various resources he must work with. There is need to protect this environment, in pursuit of sustainable development. What is sustainable development? 13  What is sustainable development? Means development that effectively incorporates economic, social, political, conservation and resources management factors in decision making for dev. It involves meeting the needs of the present without compromising the ability of future generations to meet their needs. 14  The physical and biological environment/framework Economic growth provides the conditions in which protection of the environment can be best achieved and environmental protection, in balance with other human goals, is necessary to achieve growth that is sustainable. 15  The physical and biological environment/framework This environment is characterised by both natural and artificial features. Natural features include: the topography, vegetation, ground cover and the atmosphere, soils and their condition, bodies of water and any other natural phenomena. The artificial features are buildings and any other man made feature. 16  Institutional Framework Concerned with the role cultural environments and forces of social and collective action play in influencing the behaviour of people as individual and as members of families, groups and communities. To be workable, land use programs and policies must pass the test of institutional acceptability. Must also constitutional and legal and recognise the significance of property rights. Must be politically and culturally acceptable. 17  Institutional Framework The role of man’s cultural environment and the forces of social and collective action play in influencing his behaviour as an individual and as a member of his family. To study this, information on the land use potential of an area must be provided. Collectively the lifestyle of the residents direct the quantity, quality and efficiency of the potential land use associations in an area. This environment is constantly changing. 18  Three Frameworks The three frameworks are interlinked and work together. But each framework has its own special impacts on land use programs and policies and each can be examined separately. 19  Three Frameworks Programs and policies must be physically and biologically possible, technically and economically feasible and institutionally acceptable if they are to work out in practice. Land economists must respect the constraints posed by each of the three frameworks if the programs are to be successful. 20  Land Economics and real estate Can be divided into: Rural land economics and real estate or urban land economics Rural land economics is considered a phase of agricultural economics (looks at issues on land and water utilization, land settlement and dev., reclamation, land classification, property valuation, land tenure, resource conservation, taxation problems, land use planning, zoning and land use controls and public land management. Real estate or urban land economists look at the following: 1. Problems of housing 21  Land economics and real estate 2. Urban land development and redevelopment. 3. Industrial and commercial location 4. Urban real estate appraisal 5. Finance and marketing 22  Rural Land What is our rural land for and what do we expect from it? Should farmers be diversifying into energy crops or concentrating on feeding the nation?  Definition of Rural Rural areas are large and isolated areas of an open country with low population density. The terms "countryside" and "rural areas" are not synonyms: a "countryside" refers to rural areas that are open. Forest, wetlands, and other areas with a low population density are not a countryside.  Definition of Rural Land Rural land is land that is used wholly and exclusively for carrying on a substantial business of primary production. The definition of primary production refers to production resulting directly from the cultivation of land; animal husbandry/farming; horticulture; fishing; forestry; viticulture or dairy farming. Primary production for the purpose of the rural land definition does not include vacant land (even if zoned ‘rural’), hobby farms, ‘rural residential’ blocks or land used for mining.  Definition of Land 1. The different perspectives or perceptions of land Land is a term with many meanings: – physical geographers see it as relating to the landscape – economists see land as a resource – lawyers see land as a volume of legally definable space extending from the centre of the earth to the infinity of the sky Examples of the diversity of definitions available: Dale & McLaughlin (1988): Land is "the surface of the earth, the materials beneath, the air above and all things fixed to the soil." MacNeill (1975): Land is "... the air we breathe; the water we drink and use for recreation; the land we cultivate, the cities we flock to in growing numbers; and the wilderness we seek to enjoy today and to preserve for future generations".  Land (a) Land as space fixed in quantity includes entire surface of earth and also cubic space: thus air space, sub-surface space and associated minerals cannot be destroyed or increased concept of land unit as region or spatial entity, ranging from a single "parcel" to suburb to country to whole planet  Land (b) Land as spiritual attachment For some communities, land is: – spiritual nature of land – ancestral spirits or deity that possesses itself and owns everybody and every thing – something to which people belong rather than something that people own.  Land (c) Land as community (territoriality) territoriality is an expression of power group of individuals living in a particular area, with common interests associated with their individual and collective good: "home"; "nation" natural ecological community to which individuals have special rights and responsibilities (d) Land as geographic location/situation  Land (e) Land as a factor of production (resource) in economics – Land as capital – in classical economics, land is a durable "free gift of nature" and capital is expendable past savings and stored up production of humans – sometimes land is regarded as capital in itself because of ability to raise capital with land as collateral. (g) Land as environment – Increasingly, we see land in its natural state as having intrinsic value e.g. Agenda 21 – Natural environment – Built environment  Land (h) Land as a resource as a means of support or provision – means of support, source of wealth and revenue associated with earth’s surface, beneath and above, includes mineral deposits, forests, water, fish, sunlight, rainfall, temperature changes also includes human improvements attached to the earth (i) Land as Property property: a right or enforceable claim created by custom, convention or law vested in individuals or groups positive rights: rights to exclude others - private property negative rights: rights not to be excluded - common property state, community, society creates rights - explicitly and implicitly vests them in individuals and groups; some rights reserved by state or community to enforce those rights. real estate private property vs common property  Characteristics of Rural land A classification system of eleven characteristics has been developed for reading a rural landscape and for understanding the natural and cultural forces that have shaped it. Landscape characteristics are the tangible evidence of the activities and habits of the people who occupied, developed, used, and shaped the land to serve human needs; they may reflect the beliefs, attitudes, traditions, and values of these people.  Characteristics of rural land The first four characteristics are processes that have been instrumental in shaping the land, such as the response of farmers to fertile soils. The remaining seven are physical components that are evident on the land, such as barns or orchards. Many, but not all, rural properties contain all eleven characteristics. When historic processes are linked to existing components, the rural landscape can be viewed as a unified whole.  Characteristics of rural land contd. This classification system is a tool for gathering and organizing information. First of all, it is used to develop historic contexts for rural areas. Second, the system is used to identify and evaluate the significant properties of a rural area or to determine the eligibility of a particular rural landscape. Through field survey and historic research, characteristics are associated with specific features, such as field patterns or roadways, and provide an understanding of an area or property's historic land uses and physical evolution.  Characteristics contd. Third, as information about existing characteristics is related to the historic contexts for a geographical area, assessments of significance, integrity, and boundaries can be made for specific properties.  Characteristics contd. Finally, the classification system provides a format for documenting rural properties on National Register forms. It can be used to organize the description and statement of significance for a specific rural property on the registration form. It is also useful for organizing information about rural historic contexts and property types on the multiple property documentation form.  Divided into processes and components The first four characteristics are processes that have been instrumental in shaping the land, such as the response of farmers to fertile soils. The remaining seven are physical components that are evident on the land, such as barns or orchards.  Processes - 1. Land Uses and Activities: Land uses are the major human forces that shape and organize rural communities. Human activities, such as farming, mining, ranching, recreation, social events, commerce, or industry, have left an imprint on the landscape. An examination of changing and continuing land uses may lead to a general understanding of how people have interacted with their environment and provide clues about the kinds of physical features and historic properties that should be present. Processes - 2. Patterns of Spatial Organization: The organization of land on a large scale depends on the relationship among major physical components, predominant landforms, and natural features. Politics, economics, and technology, as well as the natural environment, have influenced the organization of communities by determining settlement patterns, proximity to markets, and the availability of transportation.  Processes - 2. Patterns of Spatial Organization Contd. Organization is reflected in road systems, field patterns, distance between farmsteads, proximity to water sources, and orientation of structures to sun and wind. The distribution of towns every seven miles along a railroad corridor; and the division of land in for example, by the French long-lot system, to ensure that every parcel has river frontage.  Processes - 2. Patterns of Spatial Organization Contd. Large-scale patterns characterizing the settlement and early history of a rural area may remain constant, while individual features, such as buildings and vegetation, change over time. Changes in technology, for example, may have altered plowing practices, although the location of plowed fields, and, therefore, the overall historic pattern may remain the same.  Processes - 3. Response to the Natural Environment: Major natural features, such as mountains, prairies, rivers, lakes, forests, and grasslands, influenced both the location and organization of rural communities. Climate, similarly, influenced the siting of buildings, construction materials, and the location of clusters of buildings and structures. Traditions in land use, construction methods, and social customs commonly evolved as people responded to the physiography and ecological systems of the area where they settled.  Processes - 3. Response to the Natural Environment contd. Early settlements frequently depended upon available natural resources, such as water for transportation, irrigation, or mechanical power. Mineral or soil deposits, likewise, determined the suitability of a region for particular activities. Available materials, such as stone or wood, commonly influenced the construction of houses, barns, fences, bridges, roads, and community buildings.  Processes 4. Cultural Traditions: Cultural traditions affect the ways that land is used, occupied, and shaped. Religious beliefs, social customs, ethnic identity, and trades and skills may be evident today in both physical features and uses of the land. Ethnic customs, predating the origins of a community, were often transmitted by early settlers and perpetuated by successive generations. Others originated during a community's early development and evolution. Cultural groups have interacted with the natural environment, manipulating and perhaps altering it, and sometimes modifying their traditions in response to it.  Processes - 4. Cultural Traditions contd: Cultural traditions determined the structure of communities by influencing the diversity of buildings, location of roads and village centers, and ways the land was worked. Social customs dictated the crops planted or livestock raised. Traditional building forms, methods of construction, stylistic finishes, and functional solutions evolved in the work of local artisans.  COMPONENTS - 5. Circulation Networks: Circulation networks are systems for transporting people, goods, and raw materials from one point to another. They range in scale from livestock trails and footpaths, to roads, canals, major highways, and even airstrips. Some, such as farm or lumbering roads, internally served a rural community, while others, such as railroads and waterways, connected it to the surrounding region.  Components - 6. Boundary Demarcations: Boundary demarcations delineate areas of ownership and land use, such as an entire farmstead or open range. They also separate smaller areas having special functions, such as a fenced field or enclosed corral. Fences, walls, tree lines, hedge rows, drainage or irrigation ditches, roadways, creeks, and rivers commonly marked historic boundaries.  Components - 7. Vegetation Related to Land Use: Various types of vegetation bear a direct relationship to long-established patterns of land use. Vegetation includes not only crops, trees, or shrubs planted for agricultural and ornamental purposes, but also trees that have grown up incidentally along fence lines, beside roads, or in abandoned fields. Vegetation may include indigenous, naturalized, and introduced species.  Components - 7. Vegetation Related to Land Use contd. While many features change over time, vegetation is, perhaps, the most dynamic. It grows and changes with time, whether or not people care for it. Certain functional or ornamental plantings, such as wheat may be evident only during selected seasons. Each species has a unique pattern of growth and life span, making the presence of historic specimens questionable or unlikely in many cases. Current vegetation may differ from historic vegetation, suggesting past uses of the land.  Components - 8. Buildings, Structures, and Objects: Various types of buildings, structures, and objects serve human needs related to the occupation and use of the land. Their function, materials, date, condition, construction methods, and location reflect the historic activities, customs, tastes, and skills of the people who built and used them.  Components - 8. Buildings, Structures, and Objects contd. Buildings--designed to shelter human activity--include residences, schools, churches, outbuildings, barns, stores, community halls, and train depots. Structures--designed for functions other than shelter--include dams, canals, systems of fencing, systems of irrigation, tunnels, mining shafts, grain elevators, silos, bridges, earthworks, ships, and highways. Objects--relatively small but important stationary or movable constructions--include markers and monuments, small boats, machinery, and equipment.  Components - 8. Buildings, Structures, and Objects contd Rural buildings and structures often exhibit patterns of vernacular design that may be common in their region or unique to their community. Residences may suggest family size and relationships, population densities, and economic fluctuations. The repeated use of methods, forms, and materials of construction may indicate successful solutions to building needs or demonstrate the unique skills, workmanship, or talent of a local artisan.  Components - 9. Clusters Groupings of buildings, fences, and other features, as seen in a farmstead, ranch, or mining complex, result from function, social tradition, climate, or other influences, cultural or natural. The arrangement of clusters may reveal information about historical and continuing activities, as well as the impact of varying technologies and the preferences of particular generations.  Components – 9 clusters contd. The repetition of similar clusters throughout a landscape may indicate vernacular patterns of siting, spatial organization, and land use. Also, the location of clusters, such as the market towns that emerged at the crossroads of early highways, may reflect broad patterns of a region's cultural geography.  Components 10. Archeological Sites: The sites of prehistoric or historic activities or occupation, may be marked by foundations, ruins, changes in vegetation, and surface remains. They may provide valuable information about the ways the land has been used, patterns of social history, or the methods and extent of activities such as shipping, milling, lumbering, or quarrying.  Components 10. Archeological Sites contd. The ruins of mills, charcoal kilns, canals, outbuildings, piers, quarries, and mines commonly indicate previous uses of the land. Changes in vegetation may indicate abandoned roadways, homesites, and fields. The spatial distribution of features, surface disturbances, subsurface remains, patterns of soil erosion and deposition, and soil composition may also yield information about the evolution and past uses of the land.  Components - 11. Small-scale elements: Small-scale elements, such as a foot bridge or road sign, add to the historic setting of a rural landscape. These features may be characteristic of a region and occur repeatedly throughout an area, such as limestone fence posts. While most small-scale elements are long-lasting, some, such as bales of hay, are temporal or seasonal. Collectively, they often form larger components, such as circulation networks or boundary demarcations. Small-scale elements also include minor remnants--such as canal stones, road traces, mill stones, individual fruit trees, abandoned machinery, or fence posts--that mark the location of historic activities, but lack significance or integrity as archeological sites.