California Farmland Valuation: A Hedonic Approach
AbstractThe determinants of regional farmland values are evolving over time and the farmland value growth varies by regions. As a result, the new regional farmland valuation models need to be dynamically updated with the changes in public policy, input and output markets and regional environmental amenities. This study used a Hedonic pricing model to examine the key determinants that influence the farmland values in 26 counties of California across the seven regions based on the different crop varieties and county-level economic characteristics. Specifically, we analyzed the relationship between variables that are deemed to influence demand, supply and the agricultural land values. The estimation results show that the farmland value in California is mostly determined by the production, productivities and dollar returns to the tree nuts, citrus and wine grapes. Specifically, higher productivity and net returns contribute to the increase in the farmland values. Urban influence factors have been playing a critical role in affecting the overall farmland value. For example, each additional acre of land converted to urban use raises the farmland value by $0.89 per acre. In addition, high real estate earnings might lead to rising farmland values. However, high farm earnings per capita could lower the farmland value, which suggests a tendency of witching from pursuing economies of scale to pursuing high value-added crop production that needs less farmland. Finally, high per-capita GDP and high population density can increase the farmland values.
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 InfoPaper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 149991.
Date of creation: 31 May 2013
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Farmland value; Agricultural production; Returns; Urban influences; Agribusiness; Land Economics/Use;
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral 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: (AgEcon Search).
If references are entirely missing, you can add them using this form.