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Measured Effects Of Feedlots On Residential Property Values In Minnesota: A Report To The Legislature


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  • Taff, Steven J.
  • Tiffany, Douglas G.
  • Weisberg, Sanford
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    We were asked by the Legislature to conduct "research into the effects feedlots have on the value of nearby property." To do so, we carried out a statistical examination of the interrelationships among residential property sales prices and nearby feedlots in a southwestern Minnesota study area. Structure and location data for 292 residential property sales in Redwood and Renville Counties, excluding the cities of Olivia and Redwood Falls, were linked to the location and physical characteristics of every larger feedlot within three miles of each sale. The basic approach was to ask, "Does the addition of information about feedlot proximity help us explain observed house prices beyond the explanatory power of statistical models that use only the house's structure and other location characteristics?" We examined this overall question with respect to a series of constructed proximity indicators that capture the effects of feedlot size, direction, distance, and types of animals, among others. We found statistically significant evidence of a link between feedlot location and house prices in the study area. That relationship was positive in sign, not negative as initially expected. Houses closer to feedlots appear to have sold for more than expected from knowledge of the characteristics of the houses alone. The effect was most pronounced for houses that are older, relatively lower in price, or located in small towns.

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    Bibliographic Info

    Paper provided by University of Minnesota, Department of Applied Economics in its series Staff Papers with number 14121.

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    Date of creation: 1996
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    Handle: RePEc:ags:umaesp:14121

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    Related research

    Keywords: Land Economics/Use; Livestock Production/Industries;


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    Cited by:
    1. Joseph A. Herriges & Silvia Secchi & Bruce A. Babcock, 2003. "Living with Hogs in Iowa: The Impact of Livestock Facilities on Rural Residential Property Values," Center for Agricultural and Rural Development (CARD) Publications 03-wp342, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Vinicio Vannucci & Loredana Torsello, 2006. "Economic assessment of odour emissions: an application of Hedonic Price Method," Department of Economics University of Siena 485, Department of Economics, University of Siena.
    3. Ready, Richard C. & Abdalla, Charles W., 2003. "The Amenity And Disamenity Impacts Of Agriculture: Estimates From A Hedonic Pricing Model In Southeastern Pennsylvania," 2003 Annual meeting, July 27-30, Montreal, Canada 22196, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).


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