IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v35y2006i1p59-65.html
   My bibliography  Save this article

The political economy of farmland ownership regulations and land prices

Author

Listed:
  • Shon Ferguson
  • Hartley Furtan
  • Jared Carlberg

Abstract

One of the most ubiquitous forms of agricultural regulation is a restriction on farmland ownership. One Canadian example of a farmland ownership restriction is The Saskatchewan Farm Security Act (FSA), passed in 1974. The purpose of this article is to explain, using a political economy framework, why the FSA was implemented and to estimate the effect of the FSA on Saskatchewan farmland values. A Present Value (PV) model is used to estimate the relationship between land values, rents, and the regulation. The Hausman endogeneity test reveals that the regulation variable is endogenous with the land price. The sign of the regulation variable is negative, which fits with the theory, i.e., the more stringent the regulation the lower the land value. We estimate that the regulation lowered Saskatchewan farmland prices by an average of 4 to 34 US$/acre, depending on whether ordinary least squares (OLS) or two‐stage least squares (TSLS) is employed in the estimation, over the period of 1974–2001.

Suggested Citation

  • Shon Ferguson & Hartley Furtan & Jared Carlberg, 2006. "The political economy of farmland ownership regulations and land prices," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 59-65, July.
    • Handle: RePEc:bla:agecon:v:35:y:2006:i:1:p:59-65
    DOI: 10.1111/j.1574-0862.2006.00139.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1574-0862.2006.00139.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1574-0862.2006.00139.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Micheels, Eric T. & Nolan, James F., 2016. "Examining the effects of absorptive capacity and social capital on the adoption of agricultural innovations: A Canadian Prairie case study," Agricultural Systems, Elsevier, vol. 145(C), pages 127-138.
    2. Annette Aurélie Desmarais & Darrin Qualman & André Magnan & Nettie Wiebe, 2017. "Investor ownership or social investment? Changing farmland ownership in Saskatchewan, Canada," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 34(1), pages 149-166, March.
    3. Pavel Ciaian & Edoardo Baldoni & d'Artis Kancs & Dušan Drabik, 2021. "The Capitalization of Agricultural Subsidies into Land Prices," Annual Review of Resource Economics, Annual Reviews, vol. 13(1), pages 17-38, October.
    4. Bell, Peter N, 2014. "Farmland Ownership Policy: Technical Paper," MPRA Paper 53185, University Library of Munich, Germany.
    5. B. James Deaton & Chad Lawley, 2022. "A survey of literature examining farmland prices: A Canadian focus," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(2), pages 95-121, June.
    6. Schwab, Benjamin & Butsic, Van A., 2017. "Green Acres? Cannabis agriculture and rural land values in Northern California," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258486, Agricultural and Applied Economics Association.
    7. Bell, Peter N, 2014. "Farmland Ownership Restrictions: Between a Rock and a Hard Place," MPRA Paper 53033, University Library of Munich, Germany.
    8. Lars Isenhardt & Stefan Seifert & Silke Hüttel, 2023. "Tenant Favoritism and Right of First Refusals in Farmland Auctions: Competition and Price Effects," Land Economics, University of Wisconsin Press, vol. 99(2), pages 302-324.
    9. Chi Su & Richard A. Schoney & James F. Nolan, 2023. "Buy, sell or rent the farm: succession planning and the future of farming on the Great Plains," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 18(3), pages 627-669, July.
    10. Gabruch, Mandy L. & Micheels, Eric T., 2017. "2016 WAEA Winning Student Submission: The Effect of Saskatchewan's Ownership Restrictions on Farmland Values," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(1), pages 1-13, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:agecon:v:35:y:2006:i:1:p:59-65. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.