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A Spatio‐temporal Model of Farmland Values

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  • David Maddison

Abstract

Despite the fact that data on farm sales are invariably collected over both time and space, previous papers have allowed for the presence of either temporal or spatial relationships in the data, but not both. Some papers have also inadvertently assumed that although farmland values are influenced by prices realised by nearby sales, these sales need not necessarily be comparable in terms of their attributes. Using data on sales of farmland obtained through public auctions in England and Wales, this paper examines the consequences of explicitly allowing for the presence of a spatio‐temporal lag in the estimation of hedonic models of farmland value. The results indicate that spatio‐temporally lagged values of the dependent and independent variables contribute significant additional explanatory power. Accounting for spatio‐temporal relationships appears moreover to somewhat alter the perceived size and statistical significance of key farmland attributes.

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  • David Maddison, 2009. "A Spatio‐temporal Model of Farmland Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 171-189, February.
  • Handle: RePEc:bla:jageco:v:60:y:2009:i:1:p:171-189
    DOI: 10.1111/j.1477-9552.2008.00182.x
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    2. Cotteleer, Geerte & van Kooten, G. Cornelis, 2012. "Expert opinion versus actual transaction evidence in the valuation of non-market amenities," Economic Modelling, Elsevier, vol. 29(1), pages 32-40.
    3. Jae Hong Kim & Geoffrey J. D. Hewings, 2012. "An Application of the Disequilibrium Adjustment Framework to Small Area Forecasting and Impact Analysis," Advances in Spatial Science, in: Esteban Fernández Vázquez & Fernando Rubiera Morollón (ed.), Defining the Spatial Scale in Modern Regional Analysis, edition 127, chapter 0, pages 139-155, Springer.
    4. Choumert, Johanna & Phélinas, Pascale, 2015. "Determinants of agricultural land values in Argentina," Ecological Economics, Elsevier, vol. 110(C), pages 134-140.
    5. Ram Pandit & Maksym Polyakov & Rohan Sadler, 2014. "Valuing public and private urban tree canopy cover," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), pages 453-470, July.
    6. Hüttel, S. & Wildermann, L., 2015. "Price formation in agricultural land markets – how do different acquiring parties and sellers matter?," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 50, March.
    7. Ritter, Matthias & Huttel, Silke & Odening, Martin & Seifert, Stefan, 2019. "Revisiting The Relationship Between Land Price And Parcel Size," 2019 Conference (63rd), February 12-15, 2019, Melbourne, Australia 285062, Australian Agricultural and Resource Economics Society (AARES).
    8. O'Donoghue, Cathal & Lopez, Jeremey & O’Neill, Stephen & Ryan, Mary, 2015. "AHedonic Price Model of Self-Assessed Agricultural Land Values," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212639, European Association of Agricultural Economists.
    9. Paul Feichtinger & Klaus Salhofer, 2016. "The Fischler Reform of the Common Agricultural Policy and Agricultural Land Prices," Land Economics, University of Wisconsin Press, vol. 92(3), pages 411-432.
    10. Carlo Fezzi & Ian Bateman, 2015. "The Impact of Climate Change on Agriculture: Nonlinear Effects and Aggregation Bias in Ricardian Models of Farmland Values," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(1), pages 57-92.
    11. 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.
    12. 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..
    13. Tapsuwan, Sorada & Polyakov, Maksym & Bark, Rosalind & Nolan, Martin, 2015. "Valuing the Barmah–Millewa Forest and in stream river flows: A spatial heteroskedasticity and autocorrelation consistent (SHAC) approach," Ecological Economics, Elsevier, vol. 110(C), pages 98-105.
    14. Polyakov, Maksym & Pannell, David J. & Pandit, Ram & Tapsuwan, Sorada & Park, Geoff, 2013. "Valuing Environmental Assets on Rural Lifestyle Properties," Agricultural and Resource Economics Review, Cambridge University Press, vol. 42(1), pages 159-175, April.
    15. Stefan Seifert & Christoph Kahle & Silke Hüttel, 2021. "Price Dispersion in Farmland Markets: What Is the Role of Asymmetric Information?," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1545-1568, August.
    16. Ludo Peeters & Eloi Schreurs & Steven Passel, 2017. "Heterogeneous Impact of Soil Contamination on Farmland Prices in the Belgian Campine Region: Evidence from Unconditional Quantile Regressions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(1), pages 135-168, January.
    17. Friederike Lehn & Enno Bahrs, 2018. "Land-Use Competition or Compatibility between Nature Conservation and Agriculture? The Impact of Protected Areas on German Standard Farmland Values," Sustainability, MDPI, Open Access Journal, vol. 10(4), pages 1-20, April.
    18. 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, Open Access Journal, vol. 9(12), pages 1-21, November.
    19. Mohammad Rondhi & Pravitasari Anjar Pratiwi & Vivi Trisna Handini & Aryo Fajar Sunartomo & Subhan Arif Budiman, 2018. "Agricultural Land Conversion, Land Economic Value, and Sustainable Agriculture: A Case Study in East Java, Indonesia," Land, MDPI, Open Access Journal, vol. 7(4), pages 1-19, November.
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    22. Lehn, Friederike & Bahrs, Enno, 2018. "Analysis of factors influencing standard farmland values with regard to stronger interventions in the German farmland market," Land Use Policy, Elsevier, vol. 73(C), pages 138-146.
    23. Huttel, Silke & Wildermann, Lutz, 2014. "Price Formation In Agricultural Land Markets How Do Different Acquiring Parties And Sellers Matter?," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187596, German Association of Agricultural Economists (GEWISOLA).

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