Advanced Search
MyIDEAS: Login

Farmland valuation and asset performance


Author Info

  • Charles B. Moss
  • Ani L. Katchova


The first theme addressed in this paper is agricultural asset performance. The low rate of return on agricultural assets has been of particular interest to policy makers. From a market portfolio perspective, several studies have analyzed the relationship between farm asset returns and systematic market factors, concluding that farmland adds little systematic risk to a well-diversified portfolio. Because asset values adjust so that the return to each asset is in equilibrium with its relative risk, any persistent low return on agricultural assets may be due to differences in relative risk. The paper’s second theme is the valuation of farmland in the United States. Numerous studies have examined the factors affecting farmland values. Most have used the standard present value capitalization formula relating land values to land rents, although these models have been rejected by empirical data. Several studies have reformulated and improved the performance of the present value models. Since changes in rates of return of agricultural assets and land values can have drastic consequences for farmers’ wealth and sector solvency, future research needs in this area will continue.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:;jsessionid=43AE8F21925462C6AD91A4975FB7E4CD?contentType=Article&contentId=1784569
Download Restriction: Cannot be freely downloaded

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Emerald Group Publishing in its journal Agricultural Finance Review.

Volume (Year): 65 (2005)
Issue (Month): 2 (July)
Pages: 119-130

as in new window
Handle: RePEc:eme:afrpps:v:65:y:2005:i:2:p:119-130

Contact details of provider:
Web page:

Order Information:
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK

Related research

Keywords: Asset performance; Farmland valuation; Government subsidies;


No references listed on IDEAS
You can help add them by filling out this form.


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

Cited by:
  1. Woltjer, Geert B. & Luijt, Jan L. & Jongeneel, Roelof A., 2008. "A Land Market Cycle in the Netherlands," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44376, European Association of Agricultural Economists.
  2. Brian C. Briggeman & Michael A. Gunderson & Brent A. Gloy, 2009. "The financial health of agricultural lenders," Regional Research Working Paper RRWP 09-01, Federal Reserve Bank of Kansas City.
  3. Ifft, Jennifer & Nickerson, Cynthia J. & Kuethe, Todd H. & You, Chengxia, 2012. "Potential Farm-Level Effects of Eliminating Direct Payments," Economic Information Bulletin 139809, United States Department of Agriculture, Economic Research Service.
  4. Xu, Jin & Leatham, David J., 2010. "Dynamic Analysis of Land Prices with Flexible Risk Aversion Coefficients," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61872, Agricultural and Applied Economics Association.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:eme:afrpps:v:65:y:2005:i:2:p:119-130. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister).

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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