IDEAS home Printed from https://ideas.repec.org/a/ags/jasfmr/233878.html
   My bibliography  Save this article

Estimating the Contribution of Groundwater Irrigation to Farmland Values in Phillips County, Colorado

Author

Listed:
  • Swanepoel, G.D.
  • Hadrich, Joleen
  • Goemans, Christopher

Abstract

Hedonic price analysis is applied to farmland sales in Phillips County, Colorado to examine trends in farmland values across different land types from 1999-2012. Results demonstrate that irrigated acres resulted in the highest farmland value while well depth decreased this value. The marginal value of an acre foot of water on irrigated farmland ranged from $3-$36 depending on well depth and the discount rate used. This highlights the potential long-term negative impacts that lowering groundwater tables have on agricultural enterprises that rely on wells for irrigation.

Suggested Citation

  • Swanepoel, G.D. & Hadrich, Joleen & Goemans, Christopher, 2015. "Estimating the Contribution of Groundwater Irrigation to Farmland Values in Phillips County, Colorado," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2015, pages 1-14.
    • Handle: RePEc:ags:jasfmr:233878
    DOI: 10.22004/ag.econ.233878
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/233878/files/429_Hadrich_final.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.233878?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
    ---><---

    References listed on IDEAS

    as
    1. J. W. Milliman, 1959. "Land Values as Measures of Primary Irrigation Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 41(2), pages 234-243.
    2. L. Allen Torell & James D. Libbin & Michael D. Miller, 1990. "The Market Value of Water in the Ogallala Aquifer," Land Economics, University of Wisconsin Press, vol. 66(2), pages 163-175.
    3. Poor, P. Joan & Pessagno, Keri L. & Paul, Robert W., 2007. "Exploring the hedonic value of ambient water quality: A local watershed-based study," Ecological Economics, Elsevier, vol. 60(4), pages 797-806, February.
    4. Cho, Seong-Hoon & Bowker, James Michael & Park, William M., 2006. "Measuring the Contribution of Water and Green Space Amenities to Housing Values: An Application and Comparison of Spatially Weighted Hedonic Models," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(3), pages 1-23, December.
    5. Xu, Feng & Mittelhammer, Ronald C. & Torell, L. Allen, 1994. "Modeling Nonnegativity Via Truncated Logistic And Normal Distributions: An Application To Ranch Land Price Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(1), pages 1-13, July.
    6. 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.
    7. Hennings, Enrique & Sherrick, Bruce J. & Barry, Peter J., 2005. "Portfolio Diversification Using Farmland Investments," 2005 Annual meeting, July 24-27, Providence, RI 19273, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    9. Miranowski, John & Hammes, B., 1984. "Implicit Prices of Soil Characteristics for Farmland in Iowa," Staff General Research Papers Archive 10706, Iowa State University, Department of Economics.
    10. Michael D. Bordo, 2008. "An Historical Perspective on the Crisis of 2007-2008," NBER Working Papers 14569, National Bureau of Economic Research, Inc.
    11. Ervin, David E. & Mill, John W., 1985. "Agricultural Land Markets and Soil Erosion: Policy Relevance and Conceptual Issues," 1985 Annual Meeting, August 4-7, Ames, Iowa 278510, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Gregory M. Perry & Lindon J. Robison, 2001. "Evaluating the Influence of Personal Relationships on Land Sale Prices: A Case Study in Oregon," Land Economics, University of Wisconsin Press, vol. 77(3), pages 385-398.
    13. John A. Miranowski & Brian D. Hammes, 1984. "Implicit Prices of Soil Characteristics for Farmland in Iowa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(5), pages 745-749.
    14. Price, James I. & McCollum, Daniel W. & Berrens, Robert P., 2010. "Insect infestation and residential property values: A hedonic analysis of the mountain pine beetle epidemic," Forest Policy and Economics, Elsevier, vol. 12(6), pages 415-422, July.
    15. Marco Lombardi & Chiara Osbat & Bernd Schnatz, 2012. "Global commodity cycles and linkages: a FAVAR approach," Empirical Economics, Springer, vol. 43(2), pages 651-670, October.
    16. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    17. W. D. Shaw, 2005. "Water Resource Economics and Policy," Books, Edward Elgar Publishing, number 3495.
    18. John Faux & Gregory M. Perry, 1999. "Estimating Irrigation Water Value Using Hedonic Price Analysis: A Case Study in Malheur County, Oregon," Land Economics, University of Wisconsin Press, vol. 75(3), pages 440-452.
    19. Featherstone, Allen M. & Schurle, Bryan W. & Duncan, Steven S. & Postier, Kevin D., 1993. "Clearance Sales In The Farmland Market?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(2), pages 1-15, December.
    20. Bruce J. Sherrick & Mindy L. Mallory & Timothy Hopper, 2013. "What's the ticker symbol for farmland?," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 73(1), pages 6-31, May.
    21. Kent Gardner & Richard Barrows, 1985. "The Impact of Soil Conservation Investments on Land Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(5), pages 943-947.
    22. James Crotty, 2009. "Structural causes of the global financial crisis: a critical assessment of the 'new financial architecture'," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(4), pages 563-580, July.
    23. William E. Martin & Gene L. Jefferies, 1966. "Relating Ranch Prices and Grazing Permit Values to Ranch Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 48(2), pages 233-242.
    24. Veeman, Terrence S. & Veeman, Michele M. & Adamowicz, Wiktor L. & Royer, S. & Viney, Bruce & Freeman, Ruth & Baggs, J., 1997. "Conserving Water in Irrigated Agriculture: The Economics and Valuation of Water Rights," Project Report Series 24047, University of Alberta, Department of Resource Economics and Environmental Sociology.
    25. L. M. Hartman & R. L. Anderson, 1962. "Estimating the Value of Irrigation Water from Farm Sales Data in Northeastern Colorado," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 44(1), pages 207-213.
    26. David E. Ervin & John W. Mill, 1985. "Agricultural Land Markets and Soil Erosion: Policy Relevance and Conceptual Issues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(5), pages 938-942.
    27. Bastian, Chris T. & McLeod, Donald M. & Germino, Matthew J. & Reiners, William A. & Blasko, Benedict J., 2002. "Environmental amenities and agricultural land values: a hedonic model using geographic information systems data," Ecological Economics, Elsevier, vol. 40(3), pages 337-349, March.
    28. Noland, Kevin & Norvell, Jonathan & Paulson, Nicholas D. & Schnitkey, Gary D., 2011. "The Role of Farmland in an Investment Portfolio: Analysis of Illinois Endowment Farms," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2011, pages 1-42, June.
    29. Ekin Birol & Katia Karousakis & Phoebe Koundouri, 2006. "Using economic valuation techniques to inform water resources management: A survey and critical appraisal of available techniques and an application," DEOS Working Papers 0607, Athens University of Economics and Business.
    30. Jan P. Crouter, 1987. "Hedonic Estimation Applied to a Water Rights Market," Land Economics, University of Wisconsin Press, vol. 63(3), pages 259-271.
    31. Gardner, Kent & Barrows, Richard, 1985. "The Impact Of Soil Conservation Investments On Land Prices," 1985 Annual Meeting, August 4-7, Ames, Iowa 278507, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    32. Leah J. Tsoodle & Bill B. Golden & Allen M. Featherstone, 2006. "Factors Influencing Kansas Agricultural Farm Land Values," Land Economics, University of Wisconsin Press, vol. 82(1), pages 124-139.
    33. Duffy, Michael D., 2011. "The Current Situation On Farmland Values And Ownership," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 26(2), pages 1-6.
    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. Thomas, Raymond J. & Myers, Matthew & Pendell, Dustin L. & Taylor, Mykel & Yu, Jisang & Tian, Amanda, 2024. "Impact of Confined Animal Feeding Operations on Agricultural Land Values," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2024, January.
    2. Loomis, John & Haefele, Michelle, 2017. "Quantifying Market and Non-market Benefits and Costs of Hydraulic Fracturing in the United States: A Summary of the Literature," Ecological Economics, Elsevier, vol. 138(C), pages 160-167.

    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. Phoebe Koundouri, 2004. "Current Issues in the Economics of Groundwater Resource Management," Journal of Economic Surveys, Wiley Blackwell, vol. 18(5), pages 703-740, December.
    2. Gregory M. Perry & Lindon J. Robison, 2001. "Evaluating the Influence of Personal Relationships on Land Sale Prices: A Case Study in Oregon," Land Economics, University of Wisconsin Press, vol. 77(3), pages 385-398.
    3. Coelli, Tim J. & Lloyd-Smith, J. & Morrison, D. & Thomas, J., 1991. "Hedonic Pricing For A Cost Benefit Analysis Of A Public Water Supply Scheme," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 35(1), pages 1-20, April.
    4. Vuuren, W. van & Ketchabaw, E. H., 1994. "A Hedonic Study of Agricultural Land Rent in Southwestern Ontario," Department of Agricultural Economics and Business 258777, University of Guelph.
    5. Perry, Gregory M. & Robison, Lindon J., 1999. "Personal Relationships: Do They Influence The Sale Price Of Land?," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35685, Western Agricultural Economics Association.
    6. Chun-Chang Lee & Yi-Xin Chen & Yun-Ling Wu & Wen-Chih Yeh & Chih-Min Liang, 2020. "Multilevel Analysis of the Pressure of Agricultural Land Conversion, Degree of Urbanization and Agricultural Land Prices in Taiwan," Land, MDPI, vol. 9(12), pages 1-21, November.
    7. Choumert, Johanna & Phélinas, Pascale, 2015. "Determinants of agricultural land values in Argentina," Ecological Economics, Elsevier, vol. 110(C), pages 134-140.
    8. Walpole, Sandra C. & Lockwood, Michael, 1999. "Influence of remnant native vegetation on rural land values: a hedonic pricing application," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 125032, Australian Agricultural and Resource Economics Society.
    9. Noumir, Ashraf & Langemeier, Michael, 2022. "Risk and return of heterogenous farmland locations and qualities," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(4), September.
    10. Marcelo Caffera & Felipe Vásquez & Daniel Rodríguez & Leonidas Carrasco-Letelier & José Ignacio Hernández & Mariela Buonomo, 2019. "Spatial Spillovers in the Implicit Market Price of Soil Erosion: An Estimation using a Spatio-temporal Hedonic Model," Documentos de Trabajo/Working Papers 1909, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    11. Chen, Le & Rejesus, Roderick M. & Aglasan, Serkan & Hagen, Stephen & Salas, William, 2022. "The Impact of No-Till Production on Agricultural Land Values in the US Midwest," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322445, Agricultural and Applied Economics Association.
    12. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313, Elsevier.
    13. Bereket Araya & John Asafu‐Adjaye, 1999. "Returns to Farm‐Level Soil Conservation on Tropical Steep Slopes: The Case of the Eritrean Highlands," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 589-605, September.
    14. Ekin Birol & Katia Karousakis & Phoebe Koundouri, 2006. "Using economic valuation techniques to inform water resources management: A survey and critical appraisal of available techniques and an application," DEOS Working Papers 0607, Athens University of Economics and Business.
    15. Ma, Shan & Swinton, Scott M., 2011. "Valuation of ecosystem services from rural landscapes using agricultural land prices," Ecological Economics, Elsevier, vol. 70(9), pages 1649-1659, July.
    16. Lambert, David & Shultz, Steven, 1999. "Implicit Prices of CRP Enrollments, Wetlands, and Soil Quality in North Dakota," Western Region Archives 321699, Western Region - Western Extension Directors Association (WEDA).
    17. Choumert, Johanna & Phélinas, Pascale, 2014. "A Hedonic Analysis Of Agricultural Land Values In A Gm Soybean Area Of Argentina," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182750, European Association of Agricultural Economists.
    18. Calatrava-Leyva, Javier & Franco, Juan Agustin & Gonzalez-Roa, Maria del Carmen, 2005. "Adoption of Soil Conservation Practices in Olive Groves: The Case of Spanish Mountainous Areas," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24661, European Association of Agricultural Economists.
    19. Tsoodle, Leah J. & Featherstone, Allen M. & Golden, Bill B., 2005. "Estimating the Market Value of Agricultural Land in Kansas Using a Combination of Hedonic and Negative Exponential Techniques," 2005 Agricultural and Rural Finance Markets in Transition, October 3-4, 2005, Minneapolis, Minnesota 132763, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    20. Jean-Sauveur Ay & Jean-Marc Brayer & Jean Cavailhès & Pierre Curmi & Mohamed Hilal & Marjorie Ubertosi, 2012. "La valeur des attributs naturels des terres agricoles de Côte-d'Or," INRA UMR CESAER Working Papers 2012/1, INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux.

    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:jasfmr:233878. 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/asfmrea.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.