Empirical Study of Land Degradation and Its Effects on Agricultural Land Values in Katsina State

This study empirically examines the relationship between land degradation severity and agricultural land transaction values in Katsina State, North West Nigeria, contributing to the limited evidence base on how environmental quality changes affect rural land markets in semiarid Nigeria. Katsina State faces severe desertification, soil erosion, and declining soil fertility that reduce agricultural productivity, yet the market price effect of these environmental changes on agricultural land has not been systematically quantified, limiting land valuation practice and environmental policy analysis. A field-based research design combines satellite-derived land degradation severity indices using MODIS and Sentinel data with primary land transaction data collected from 80 rural land buyers and sellers in Kankia, Daura, and Mani Local Government Areas. Direct interviews with sellers and buyers capture transaction prices, land characteristics, and degradation observations. Hedonic regression analysis estimates the price effect of degradation indicators after controlling for farm size, distance to market, water access, and tenure characteristics. Findings show statistically significant negative effects of vegetation index decline and soil erosion indicators on agricultural land values. A one standard deviation reduction in the NDVI vegetation index is associated with a land value decline of approximately 22 percent. Groundwater access moderates the degradation-price relationship, with irrigated parcels showing significantly less price sensitivity to surface degradation indicators. Land with traditional tenure is priced at a discount relative to formally documented plots, independent of physical condition. Recommendations include mandatory land condition disclosure in agricultural land transactions and a state-funded land rehabilitation support scheme. Keywords: land degradation, agricultural land values, Katsina State, hedonic pricing, desertification.