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Agricultural Land Values and the Value of Rights to Future Land Development

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Author Info
Andrew J. Plantinga
Douglas J. Miller
Abstract

We investigate the influence of future land development on current agricultural land values. From a theoretical model of land markets, we derive a reduced-form expression for agricultural land values in terms of observable variables. This result dictates the specification of our econometric model and we find strong support for the model in an application to New York State. The estimated model, together with a spatial interpolation algorithm, is used to generate a surface of estimated development rights values for Orange County. This approach overcomes several problems that arise with the use of standard appraisal methods to value conservation easements.

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File URL: http://le.uwpress.org/cgi/reprint/77/1/56
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Publisher Info
Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 77 (2001)
Issue (Month): 1 ()
Pages: 56-67
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Handle: RePEc:uwp:landec:v:77:y:2001:i:1:p:56-67

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Find related papers by JEL classification:
Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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  1. 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:
  2. Steven Stillman, 2005. "Examining Changes in the Value of Rural Land in New Zealand between 1989 and 2003," Urban/Regional 0509015, EconWPA. [Downloadable!]
    Other versions:
  3. Hailu, Yohannes G. & Brown, Cheryl, 2007. "Regional Growth Impacts on Agricultural Land Development: A Spatial Model for Three States," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(1), April. [Downloadable!]
  4. Stavins, Robert & Plantinga, Andrew & Lubowski, Ruben, 2002. "The Effects of Potential Land Development on Agricultural Land Prices," Discussion Papers dp-02-11-, Resources For the Future. [Downloadable!]
    Other versions:
  5. Jason Winfree & Jill McCluskey & Ron Mittelhammer, 2006. "Buyer-Type Effects in Conservation and Preservation Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 33(2), pages 167-179, September. [Downloadable!] (restricted)
  6. Boyer, Tracy, 2003. "The Wetland Restoration Site Selection Problem Under Wetland Mitigation Banking (WMB) in Minnesota," 2003 Annual meeting, July 27-30, Montreal, Canada 22189, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  7. Philippe Cyrenne & Robert Fenton & Joseph Warbanski, 2006. "Historic Buildings and Rehabilitation Expenditures: A Panel Data Approach," Journal of Real Estate Research, American Real Estate Society, vol. 28(4), pages 349-380. [Downloadable!]
  8. Winfree, Jason A. & McCluskey, Jill J. & Mittelhammer, Ron C., 2002. "An Option Value Approach To Valuing Preservation Properties," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36619, Western Agricultural Economics Association. [Downloadable!]
  9. Sylvia Dixon & David C. Maré, 2005. "Changes in the Maori Income Distribution: Evidence from the Population Census," Working Papers 05_06, Motu Economic and Public Policy Research. [Downloadable!]
    Other versions:
  10. Liu, Xiangping & Lynch, Lori, 2006. "Do Agricultural Preservation Programs Affect Farmland Conversion? Evidence from a Propensity Score Matching Estimator," Working Papers 28569, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
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