Comparison of alternative sources of farmland values
AbstractPurpose – Consistent and reliable data on farmland values is critical to assessing the overall financial health of agricultural producers. However, little is known about the idiosyncrasies and similarities of standard land value data sources – US Department of Agriculture (USDA), Federal Reserve Bank land value surveys, and transaction prices. The purpose of this paper is to determine the differences and similarities of land value movements from three land value data sources. Design/methodology/approach – In addition to Oklahoma transaction prices, two survey sources are considered: the USDA annual report and the quarterly Tenth District Survey of Agricultural Credit Conditions administered by the Federal Reserve Bank of Kansas City. The paper describes each data set and identifies differences in data sampling, collection, and reporting. Average values of Oklahoma farmland across data sources are examined. USDA estimates are regressed against quarterly Federal Reserve values across multiple states to determine the point in time represented by USDA estimates. Granger causality tests determine if Federal Reserve land value estimates anticipate movements in USDA land value estimates. Findings – It is found that all three data sources are highly correlated, but transaction prices tend to be higher, especially for irrigated cropland and ranchland. USDA land values are reported as representing land values on January first, but instead they more closely represent first and second quarter land values according to a multi-state comparison to changes in quarterly Federal Reserve land values. Given the finding that first quarter Federal Reserve Bank land values lead USDA land values and that they are published before the USDA release, Federal Reserve land values are a timely indicator of agricultural producers' financial position. Originality/value – No previous research has addressed the topic of how various sources of agricultural land values compare. JEL classification: G32, Q14
Download InfoIf 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.
Bibliographic InfoArticle provided by Emerald Group Publishing in its journal Agricultural Finance Review.
Volume (Year): 72 (2012)
Issue (Month): 1 (March)
Contact details of provider:
Web page: http://www.emeraldinsight.com
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Other versions of this item:
- Zakrzewicz, Christopher J. & Brorsen, B. Wade & Briggeman, Brian C., 2011. "Comparison of Alternative Sources of Farmland Values," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103758, Agricultural and Applied Economics Association.
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Livanis, Grigorios T. & Moss, Charles B. & Breneman, Vincent E. & Nehring, Richard F., 2005. "Urban Sprawl and Farmland Prices," Working Papers 15657, University of Florida, International Agricultural Trade and Policy Center.
- Brian C. Briggeman & Michael A. Gunderson & Brent A. Gloy, 2009.
"The Financial Health of Agricultural Lenders,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 91(5), pages 1406-1413.
- Barry K. Goodwin & Ashok K. Mishra & Fran�ois N. Ortalo-Magné, 2003. "What's Wrong with Our Models of Agricultural Land Values?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 744-752.
- Henderson, Jason R. & Moore, Sean, 2006. "The Capitalization of Wildlife Recreation Income into Farmland Values," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(03), December.
- Leah J. Tsoodle & Bill B. Golden & Allen M. Featherstone, 2006. "Factors Influencing Kansas Agricultural Farm Land Values," Land Economics, University of Wisconsin Press, vol. 82(1), pages 124-139.
- Sanders, Dwight R. & Irwin, Scott H. & Leuthold, Raymond M., 2003. "The Theory Of Contrary Opinion: A Test Using Sentiment Indices In Futures Markets," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 21(1).
- Vincent E. Breneman & Richard F. Nehring, 2006. "Urban Sprawl and Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 915-929.
- Herriges, Joseph A. & Shogren, Jason F., 1992. "The Implicit Value of Corn Base Acreage," Staff General Research Papers 10788, Iowa State University, Department of Economics.
- Falk, Barry L. & Lee, Bong-Soo, 1998. "Fads Versus Fundamentals in Farmland Prices," Staff General Research Papers 1306, Iowa State University, Department of Economics.
- Andrew J. Plantinga & Douglas J. Miller, 2001. "Agricultural Land Values and the Value of Rights to Future Land Development," Land Economics, University of Wisconsin Press, vol. 77(1), pages 56-67.
- Haixiao Huang & Gay Y. Miller & Bruce J. Sherrick & Miguel I. G�mez, 2006. "Factors Influencing Illinois Farmland Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 458-470.
- Flanders, Archie & White, Fred C. & Escalante, Cesar L., 2004. "Comparing Land Values And Capitalization Of Cash Rents For Cropland And Pasture In Georgia," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34614, Southern Agricultural Economics Association.
- Pamela Guiling & Damona Doye & B. Wade Brorsen, 2009. "Agricultural, recreational and urban influences on agricultural land prices," Agricultural Finance Review, Emerald Group Publishing, vol. 69(2), pages 196-205, July.
- Titus O. Awokuse & Joshua M. Duke, 2006.
"The Causal Structure of Land Price Determinants,"
Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie,
Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(2), pages 227-245, 06.
- Leah J. Tsoodle & Allen M. Featherstone & Bill B. Golden, 2007. "Combining hedonic and negative exponential techniques to estimate the market value of land," Agricultural Finance Review, Emerald Group Publishing, vol. 67(2), pages 225-239, September.
- Pam Guiling & B. Wade Brorsen & Damona Doye, 2009. "Effect of Urban Proximity on Agricultural Land Values," Land Economics, University of Wisconsin Press, vol. 85(2), pages 252-264.
- Barry Falk & Bong-Soo Lee, 1998. "Fads versus Fundamentals in Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 696-707.
- Schurle, Bryan & Featherstone, Allen & Wilson, Christine & Crossan, Dylan, 2013. "Land Prices During Periods of Rapid Change," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister).
If references are entirely missing, you can add them using this form.