IDEAS home Printed from https://ideas.repec.org/a/ags/arerjl/31621.html

Farmland Preservation and Differential Taxation: Evaluating Optimal Policy Under Conditions of Uncertainty

Author

Listed:
  • Johnston, Robert J.

Abstract

Differential property tax policy for farmland is often set under conditions of uncertainty and limited information regarding landowners' objective functions. This study examines optimal differential tax policy for a parcel of agricultural land facing uncertain development, identifying instances in which common farmland taxation policies may be non-optimal. Optimal tax rates are characterized given three possible causes of uncertain development: exogenous offers from developers, tax-related reductions in landowner wealth, and a combination of these factors. Model results indicate that underlying causes of uncertain development are critical when seeking to assess the optimality of differential taxation policies, and the use of a single, time-invariant differential tax levy is rarely optimal given uncertain development.

Suggested Citation

  • Johnston, Robert J., 2003. "Farmland Preservation and Differential Taxation: Evaluating Optimal Policy Under Conditions of Uncertainty," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 32(2), pages 1-11, October.
    • Handle: RePEc:ags:arerjl:31621
    DOI: 10.22004/ag.econ.31621
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/31621/files/32020198.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.31621?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rigoberto A. Lopez & Farhed A. Shah & Marilyn A. Altobello, 1994. "Amenity Benefits and the Optimal Allocation of Land," Land Economics, University of Wisconsin Press, vol. 70(1), pages 53-62.
    2. John E. Anderson, 1993. "Use-Value Property Tax Assessment: Effects on Land Development," Land Economics, University of Wisconsin Press, vol. 69(3), pages 263-269.
    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


    Cited by:

    1. Chhetri, Sagar Godar & Li, Yanshu & Hepinstall-Cymerman, Jeffery & Siry, Jacek & Gordon, Jason, 2024. "Factors influencing forestland enrollment in Georgia's preferential property tax programs," Forest Policy and Economics, Elsevier, vol. 160(C).
    2. Amponsah, Owusu & Blija, Daniel Kwame & Ayambire, Raphael Anammasiya & Takyi, Stephen Appiah & Mensah, Henry & Braimah, Imoro, 2022. "Global urban sprawl containment strategies and their implications for rapidly urbanising cities in Ghana," Land Use Policy, Elsevier, vol. 114(C).
    3. Jeffrey I. Chapman & Robert J. Johnston & Timothy J. Tyrrell, 2009. "Implications of a Land Value Tax with Error in Assessed Values," Land Economics, University of Wisconsin Press, vol. 85(4), pages 576-586.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Colyer, Dale, 1998. "Farmland Preservation Programs," Conference Papers 19102, West Virginia University, Department of Agricultural Resource Economics.
    2. Barton, Nick & Adelaja, Adesoji O. & Seedang, Saichon, 2005. "Testing Speculative Behavior in Farmland Demand," 2005 Annual meeting, July 24-27, Providence, RI 19308, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Schilling, Brian J. & Attavanich, Witsanu & Sullivan, Kevin P. & Marxen, Lucas J., 2014. "Measuring the effect of farmland preservation on farm profitability," MPRA Paper 100122, University Library of Munich, Germany, revised Jun 2014.
    4. Peterson, Jeffrey M. & Boisvert, Richard N. & de Gorter, Harry, 1999. "Multifunctionality and Optimal Environmental Policies for Agriculture in an Open Economy," Working Papers 127701, Cornell University, Department of Applied Economics and Management.
    5. Lijing Tang & Dongyan Wang, 2018. "Optimization of County-Level Land Resource Allocation through the Improvement of Allocation Efficiency from the Perspective of Sustainable Development," IJERPH, MDPI, vol. 15(12), pages 1-19, November.
    6. Reed, L.L. & Kleynhans, Theo E., . "Agricultural land purchases for alternative uses – evidence from two farming areas in the Western Cape province, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 48(3), pages 1-20.
    7. Duke, Joshua M. & Aull-Hyde, Rhonda, 2002. "Identifying public preferences for land preservation using the analytic hierarchy process," Ecological Economics, Elsevier, vol. 42(1-2), pages 131-145, August.
    8. Bryden, John Marshall & Arandia Miura, Amaia & Johnson, Thomas G., 2008. "Theoretical And Policy Background To The Top-Mard Project (Towards A Policy Model Of Multifunctional Agriculture And Rural Development)," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6396, European Association of Agricultural Economists.
    9. Yanwei Zhang & Hualin Xie, 2019. "Welfare Effect Evaluation of Land-Lost Farmers’ Households under Different Livelihood Asset Allocation," Land, MDPI, vol. 8(11), pages 1-41, November.
    10. Lopez, Rigoberto A. & Altobello, Marilyn A. & Shah, Farhed A., 1994. "Amenity Benefits and Public Policy: An Application to the Connecticut Dairy Sector," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(2), pages 485-496, December.
    11. Bigelow, Daniel P. & Kuethe, Todd, 2023. "The impact of preferential farmland taxation on local public finances," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    12. Kline, Jeffrey & Wichelns, Dennis, 1998. "Measuring heterogeneous preferences for preserving farmland and open space," Ecological Economics, Elsevier, vol. 26(2), pages 211-224, August.
    13. Rodseth, K.L., 2008. "Efficient Supply of Cultural Landscape in a CGE Framework," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44170, European Association of Agricultural Economists.
    14. Kan, Iddo & Haim, David & Rapaport-Rom, Mickey & Shechter, Mordechai, 2009. "Environmental amenities and optimal agricultural land use: The case of Israel," Ecological Economics, Elsevier, vol. 68(6), pages 1893-1898, April.
    15. TATOUTCHOUP, Didier & GAUDET, Gérard, 2009. "The Impact of Recycling on the Long-Run Stock of Trees," Cahiers de recherche 2009-10, Universite de Montreal, Departement de sciences economiques.
    16. Aliza Fleischer & Yacov Tsur, 2009. "The Amenity Value of Agricultural Landscape and Rural–Urban Land Allocation," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 132-153, February.
    17. Simpson, R. David, 2002. "Tax Rules, Land Development, and Open Space," Discussion Papers 10741, Resources for the Future.
    18. Cacho, Oscar J., 1999. "Valuing Agroforestry In The Presence Of Land Degradation," Working Papers 12931, University of New England, School of Economics.
    19. Lovell, Sabrina J. & Lynch, Lori, 2002. "Hedonic Price Analysis Of Easement Payments In Agricultural Land Preservation Programs," Working Papers 28564, University of Maryland, Department of Agricultural and Resource Economics.
    20. Lori Lynch & Wesley N. Musser, 2001. "A Relative Efficiency Analysis of Farmland Preservation Programs," Land Economics, University of Wisconsin Press, vol. 77(4), pages 577-594.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:arerjl:31621. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/nareaea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.