With the hedonic approach, farmland price differentials are held to be indicative of underlying productivity differences. Data characterising over 400 separate transactions in farmland in England and Wales in 1994 are analysed, and the marginal value of particular farmland characteristics is computed. The analysis indicates that climate, soil quality and elevation are all important characteristics, in addition to the structural attributes of farmland. It is found that landowners are unable to costlessly 'repackage' their land and that regulated tenancies halve farm values. Some doubt is cast on the accuracy of professional valuations performed by land agents.
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A 2000 study studied this question.