Advanced Search
MyIDEAS: Login to save this paper or follow this series

Does The Farm Sector Have A Critical Mass?

Contents:

Author Info

  • Lynch, Lori
  • Carpenter, Janet

Abstract

We examine if the farm sector has a critical mass. If a critical mass of farmland acres is needed to sustain a viable agricultural sector, agriculture profits may decline once a region has dropped below this threshold, causing the rate of farmland loss to accelerate. Agricultural census and population and housing census data were assembled as a panel by county and five-year time periods for the 50-year period (1949-1997) for six Mid-Atlantic States. Three random effects models were estimated. The general model indicates that having less than 189,240 harvested cropland acres accelerates a county's rate of farmland loss. As acres increase by 10% (5,400 acres), the 5-year loss rate decreases from the predicted 7.9% to 7.67%. As sales and percent change in income increase, the rate of farmland loss also decreases. The rate falls with the introduction of a preferential taxation program. As expenses, population density, percent change in total housing units, and percent unemployment increase, the rate of farmland loss accelerates. The rate accelerates if the county is metropolitan. Yet when the data is divided into an early (pre-1978) and late (post-1978) period, this threshold effect disappears in the later period. The earlier model's results are similar but in the later period, increases in population density and sales, increase the rate of loss. Conversely and counter-intuitively, as expenses increase, the rate of loss decreases. Apparently, even if a threshold existed, our results suggest it might dissipate overtime.

Download Info

If 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.
File URL: http://purl.umn.edu/28552
Download Restriction: no

Bibliographic Info

Paper provided by University of Maryland, Department of Agricultural and Resource Economics in its series Working Papers with number 28552.

as in new window
Length:
Date of creation: 2002
Date of revision:
Handle: RePEc:ags:umdrwp:28552

Contact details of provider:
Phone: 301-405-1290
Fax: 301-314-9032
Web page: http://www.arec.umd.edu/
More information through EDIRC

Related research

Keywords: Land Economics/Use;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Yue Jin Shi & Timothy T. Phipps & Dale Colyer, 1997. "Agricultural Land Values under Urbanizing Influences," Land Economics, University of Wisconsin Press, vol. 73(1), pages 90-100.
  2. William Lockeretz, 1989. "Secondary Effects on Midwestern Agriculture of Metropolitan Development and Decreases in Farmland," Land Economics, University of Wisconsin Press, vol. 65(3), pages 205-216.
  3. Cheshire, Paul & Sheppard, Stephen, 1995. "On the Price of Land and the Value of Amenities," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 62(246), pages 247-67, May.
  4. Cynthia J. Nickerson & Lori Lynch, 2001. "The Effect of Farmland Preservation Programs on Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 83(2), pages 341-351.
  5. Larson, Janelle M. & Findeis, Jill L. & Smith, Stephen M., 2001. "Agricultural Adaptation To Urbanization In Southeastern Pennsylvania," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 30(1), April.
  6. Geoghegan, Jacqueline & Wainger, Lisa A. & Bockstael, Nancy E., 1997. "Spatial landscape indices in a hedonic framework: an ecological economics analysis using GIS," Ecological Economics, Elsevier, vol. 23(3), pages 251-264, December.
  7. Parks, Peter J. & Quimio, Wilma Rose H., 1996. "Preserving Agricultural Land With Farmland Assessment: New Jersey As A Case Study," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(1), April.
  8. Gardner, Bruce L., 1994. "Commercial Agriculture In Metropolitan Areas: Economics And Regulatory Issues," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(1), April.
  9. David L. Chicoine, 1981. "Farmland Values at the Urban Fringe: An Analysis of Sale Prices," Land Economics, University of Wisconsin Press, vol. 57(3), pages 353-362.
  10. Dhillon, Pritam S. & Derr, Donn A., 1974. "Critical Mass Of Agriculture And The Maintenance Of Productive Open Space," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 3(1:), May.
  11. Ian W. Hardie & Tulika A. Narayan & Bruce L. Gardner, 2001. "The Joint Influence of Agricultural and Nonfarm Factors on Real Estate Values: An Application to the Mid-Atlantic Region," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 83(1), pages 120-132.
  12. Elena G. Irwin & Nancy E. Bockstael, 2001. "The Problem of Identifying Land Use Spillovers: Measuring the Effects of Open Space on Residential Property Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 83(3), pages 698-704.
  13. Melville McMillan, 1975. ""Open Space Preservation in Developing Areas: An Alternative Policy": Reply," Land Economics, University of Wisconsin Press, vol. 51(4), pages 385-393.
  14. Nancy E. Bockstael, 1996. "Modeling Economics and Ecology: The Importance of a Spatial Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 78(5), pages 1168-1180.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Jaeger, William K., 2006. "The hidden costs of relocating sand and gravel mines," Resources Policy, Elsevier, Elsevier, vol. 31(3), pages 146-164, September.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ags:umdrwp:28552. See general 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 you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.