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The aim of the study presented in this article is to identify existing conflicts of land use and ownership in the 'Landwirtschaftszone', together with the problems arising therefore. This paper discusses determinants of farmland prices in Canton Zurich. A hedonic price model was used to estimate 1) the implicit value of an agricultural use of a land parcel, 2) the implicit value of the option to convert a farm parcel to a non-farm use and 3) the implicit consumptive value (value of owning land) of agricultural land.
The analysis found farmland prices are influenced by agricultural production attributes as well as factors that influence the non-agricultural demand for land. In Canton Zurich, it can be assumed that economic development has already taken place in all communities in which it was possible. Its effect on farmland prices is therefore already manifested by influencing factors such as population density and the circumstances regarding land use. Once the new law on farmland became effective (1.1.1994), speculatory motives became much less a feature of land purchases. The weight of the factors determining price has thus shifted from "non-agricultural" to "agricultural". Arousing concern is on the other hand the fact that after 1994, the likelihood of transactions on good parcels located in economically strong communities has shrunk significantly. The ruling on maximum price may be responsible for the demise of the agricultural land market.
The policy recommendations arising from the results relate both to the provisions of farmland legislation and to aspects of the law on space planning. In particular, innovations are proposed with regard to the keeping of price statistics, the terms of taking possession at income value and the definition of agricultural structures.
