inator wrote: ↑Tue Jul 11, 2017 5:23 am
It's still determined by demand. I guess it depends on if and how the area develops in the future.
That's a problem when it can go up very quickly and unexpectedly.
People may invest in one use which stops being economically viable, and that discourages investment.
We want farmers to do things like plant orchards or build raised beds and greenhouses, but they won't do it if it could financially destroy them due to a sudden increase in property tax and having to leave it all behind.
Can land still be bought and sold, and could they recoup their investments based on the land sale price?
inator wrote: ↑Tue Jul 11, 2017 5:23 am
But farmland is usually farmland for a reason. Because of the low land value.
Not really. Land most suitable for farming is also most suitable for building housing. People like fertile ground to plant their shade trees and lawns on, and it can be easier to develop on due to less rock, Nice soft ground to dig into. I've read some good arguments for preventing urban sprawl into farmland.
Of course if the price of food increases a little bit, it will quickly become economically viable to reform marginal lands, but again the issue is investment. People don't like being pushed off the land they worked hard to turn into a farm. There's also emotional attachment and community, which is harder to move.
Different rates for different uses may help solve the problem, and limits on how much it can increase from year to year. Mechanisms by which land users can recoup some investment by earning a profit on a sale could help too.
We could also consider mandates to grow food in urban areas, like rooftops, windows, yards, etc. which could bring farmers into cities. Consider sunlight a public resource, and impose a small fee for using it and a heavy fine for wasting it.