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Capitalising on Rising Land Values Capitalising on Rising Land Values

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The paper firstly reviews how land values have increased over the last 20 years and the rate at which they have increased... At any one location, the difference between a good quality soil and a poor quality soil could, through its effect on yield, cut $WUE in half (from say $160/ha/100mm to $80/ha/100mm), and this difference translates to a reduction in land value of $1,280/ha ($16/ha for each unit loss in $WUE, table 1)... The combination of yield increase (600kg/ha over 20 years) and price increase ($76/t) has typically added $80/ha/100mm to $WUE. Given that each unit gain in $WUE adds $16/ha to land price (table 1), the $80 gain in $WUE contributes to a $1,280 gain ($80/ha/100mm by 16) in land price...
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