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The Effect of Farmland Preservation Programs on Farmland Prices

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Author Info
Nickerson, Cynthia J
Lynch, Lori

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Abstract

Government agencies in urbanizing areas are increasingly utilizing purchase and transfer of development rights programs to preserve farmland and protect local farm economies. This article tests the effect of development restrictions imposed by permanent easement sales on farmland sales prices, using Maryland data. We correct for selectivity bias due to the voluntary nature of these programs in estimating hedonic sales equations. Although preserved parcels' actual land values are lower, the effect of the restrictions is not statistically significant. These findings may encourage additional participation in preservation programs or justify reductions in the easement prices paid by agencies. Copyright 2001 by American Agricultural Economics Association

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Publisher Info
Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 83 (2001)
Issue (Month): 2 (May)
Pages: 341-51
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Handle: RePEc:bla:ajagec:v:83:y:2001:i:2:p:341-51

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  1. Lynch, Lori & Lovell, Sabrina, 2001. "Factors Influencing Participation In Agricultural Land Preservation Programs," 2001 Annual meeting, August 5-8, Chicago, IL 20714, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
    Other versions:
  2. Lynch, Lori & Gray, Wayne & Geoghegan, Jacqueline, 2007. "An Evaluation of Working Land and Open Space Preservation Programs in Maryland: Are They Paying Too Much?," Working Papers 6887, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
  3. Giuliani, Gianluca & Rieder, Peter, 2003. "Landwirtschaftlicher Bodenmarkt - Dominanz der nicht-landwirtschaftlichen uber die landwirtschaftlichen Faktoren?," Agrarwirtschaft und Agrarsoziologie/ Economie et Sociologie Rurales, Swiss Society for Agricultural Economics and Rural Sociology, issue 1. [Downloadable!]
  4. Lynch, Lori, 2003. "Do Agricultural Preservation Programs And Preferential Property Tax Programs Affect Farmland Conversion?," 2003 Annual meeting, July 27-30, Montreal, Canada 22100, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Lovell, Sabrina J. & Lynch, Lori, 2002. "Hedonic Price Analysis Of Easement Payments In Agricultural Land Preservation Programs," Working Papers 28564, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
  6. Walls, Margaret & McConnell, Virginia & Kopits, Elizabeth, 2003. "How Well Can Markets for Development Rights Work? Evaluating a Farmland Preservation Program," Discussion Papers dp-03-08, Resources For the Future. [Downloadable!]
  7. Anderson, John D. & Parkhurst, Gregory M., 2004. "Economic Comparison of Commodity and Conservation Program Benefits: An Example from the Mississippi Delta," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(01), August. [Downloadable!]
  8. Bell, Kathleen P. & Dalton, Timothy J., 2006. "Spatial Economic Analysis in Data-Rich Environments," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25241, International Association of Agricultural Economists. [Downloadable!]
    Other versions:
  9. Sinden, J.A., 2003. "Influence of Conservation of Native Vegetation on Land Values in Moree Plains Shire, NSW," Working Papers 12903, University of New England, School of Economics. [Downloadable!]
  10. Hellerstein, Daniel & Nickerson, Cynthia & Cooper, Joseph & Feather, Peter & Gadsby, Dwight & Mullarkey, Daniel & Tegene, Abebayehu & Barnard, Charles, 2002. "Farmland Protection: The Role Of Public Preferences For Rural Amenities," Agricultural Economics Reports 33963, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  11. Miller, Douglas & Nickerson, Cynthia, 2003. "Impact Of Farmland Preservation Programs On The Rate Of Urban Development," 2003 Annual meeting, July 27-30, Montreal, Canada 22170, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  12. Anderson, Kathryn & Weinhold, Diana, 2005. "Do Conservation Easements Reduce Land Prices? The Case of South Central Wisconsin," Staff Paper Series 484, University of Wisconsin, Agricultural and Applied Economics. [Downloadable!]
    Other versions:
  13. Tracy Stobbe & Geerte Cotteleer & G. Cornelis van Kooten, 2008. "Hobby Farms and Protection of Farmland in British Columbia," Working Papers 2008-01, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group. [Downloadable!]
  14. Kuminoff, Nicolai V. & Sumner, Daniel A., 2001. "What Drives Farmland Conversion: Farm Returns Versus Urban Factors?," 2001 Annual meeting, August 5-8, Chicago, IL 20659, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  15. Lichtenberg, Erik & Smith-Ramirez, Ricardo, 2003. "Cost Sharing, Transaction Costs, And Conservation," 2003 Annual meeting, July 27-30, Montreal, Canada 22141, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  16. Munroe, Darla K. & Parker, Dawn C. & Campbell, Harrison S., Jr., 2004. "The Varied Impact Of Greenways On Residential Property Values In A Metropolitan, Micropolitan, And Rural Area: The Case Of The Catawba Regional Trail," 2004 Annual meeting, August 1-4, Denver, CO 19915, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  17. Larkin, Sherry L. & Alavalapati, Janaki R. & Shrestha, Ram K., 2005. "Estimating the Cost of Preserving Private Lands in Florida: An Hedonic Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(01), April. [Downloadable!]
  18. I.J. Bateman & A.P. Jones & A.A. Lovett & I.R. Lake & B.H. Day, 2002. "Applying Geographical Information Systems (GIS) to Environmental and Resource Economics," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 219-269, June. [Downloadable!] (restricted)
  19. Lynch, Lori & Carpenter, Janet, 2002. "Does The Farm Sector Have A Critical Mass?," Working Papers 28552, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
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