The positive and negative externalities from farmland are increasingly a focus of public policy discussion about agriculture and land use. A GIS-based hedonic pricing model shows that agricultural open space increases nearby residential property values, but larger-scale animal operations and mushroom production have negative impacts. Animal production facilities with as few as 200 animal equivalent units reduce nearby property values, but larger facilities do not necessarily generate larger impacts. Because they tend to occur together, the negative impacts of animal agriculture and the positive impacts of open space must be simultaneously modeled to avoid omitted variable bias. Copyright 2005 American Agricultural Economics Association.
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