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Farmland returns and economic conditions: a FAVAR approach

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  • Todd Kuethe
  • Todd Hubbs
  • Mitch Morehart

Abstract

This study examines the linkages between farmland returns and other market forces including the returns to alternative investments, agricultural sector activity, non-farm real estate, and macroeconomic conditions over the period 1973–2008. The study applies factor-augmented vector autoregression to extract information from a large panel of economic time series. Results suggest that farmland returns are influenced by common trends in the returns to alternative investments and general macroeconomic conditions. Copyright Springer-Verlag Berlin Heidelberg (outside the USA) 2014

Suggested Citation

  • Todd Kuethe & Todd Hubbs & Mitch Morehart, 2014. "Farmland returns and economic conditions: a FAVAR approach," Empirical Economics, Springer, vol. 47(1), pages 129-142, August.
    • Handle: RePEc:spr:empeco:v:47:y:2014:i:1:p:129-142
    DOI: 10.1007/s00181-013-0730-5
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    Cited by:

    1. Ifft, Jennifer & Wu, Shang & Kuethe, Todd H., 2014. "The Impact of Pasture Insurance on Farmland Values," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0, pages 1-16.
    2. Feng, Xiaoguang, 2017. "Three essays on agricultural insurance and farm real estate investment," ISU General Staff Papers 201701010800007133, Iowa State University, Department of Economics.

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    More about this item

    Keywords

    Farmland; Farmland values; Factor-augmented vector autoregression; Q14; Q15;
    All these keywords.

    JEL classification:

    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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