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Interregional Competitive Impact Of Urban Influenced Farmland Prices

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  • Foster, John H.

Abstract

The paper's hypothesis is that the farmers using land with urban influenced prices are at a competitive disadvantage because their land input cost exceeds its calitialized earning power while land prices for other farmers are based on earning ability. This hypothesis was investigated by comparing rates of return to land in Massachusetts and two non-urban dairy regions in Wisconsin. Both areas have low rates of return compared to contemporary market interest rates with Massachusetts rates somewhat below those in Wisconsin. When additional factors are considered, the hypothesis is weakly supported, at best.

Suggested Citation

  • Foster, John H., 1985. "Interregional Competitive Impact Of Urban Influenced Farmland Prices," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 14(2), pages 1-6, October.
    • Handle: RePEc:ags:nejare:28958
    DOI: 10.22004/ag.econ.28958
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    References listed on IDEAS

    as
    1. Keith C. Brown & Deborah J. Brown, 1984. "Heterogenous Expectations and Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(2), pages 164-169.
    2. Bambenek, Jerome V. & Raup, Philip M., 1968. "The Minnesota Rural Real Estate Market In 1967," Economic Study Reports 13227, University of Minnesota, Department of Applied Economics.
    3. Downs, Donna & Smith, Matthew G. & Raup, Philip M., 1984. "Minnesota Agricultural Economist No. 645," Minnesota Applied Economist\Minnesota Agricultural Economist 163807, University of Minnesota, Department of Applied Economics.
    4. Tim T. Phipps, 1984. "Land Prices and Farm-Based Returns," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(4), pages 422-429.
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