The Influence of Market Returns and Government Payments on Canadian Farmland Values
AbstractThis study estimates the impact of changes in market returns and government payments on farmland values across Canada using data from 1959 to 2009. A recursive simultaneous equation model is estimated to account for the counter-cyclical relationship between market returns and government payments. The results indicate that farmland values are more responsive to changes in market returns than in government payments, but both are important drivers of land values. The elasticity of land values with respect to government payments is lower than has been observed in the United States. In addition, the partial decoupling of government payments has not reduced their impact on farmland values.
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Bibliographic InfoPaper provided by Canadian Agricultural Trade Policy Research Network in its series Working Papers with number 122738.
Date of creation: Apr 2012
Date of revision:
Farmland Values; Government Payments; Market Returns JEL Classifications:; Agricultural and Food Policy; Demand and Price Analysis; Land Economics/Use;
Other versions of this item:
- Vyn, Richard J. & Haq, Zahoor Ul & Weerahewa, Jeevika & Meilke, Karl D., 2012. "The Influence of Market Returns and Government Payments on Canadian Farmland Values," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(2), August.
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