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Modeling the effect of off-farm income on farmland values: A quantile regression approach

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  • Mishra, Ashok K.
  • Moss, Charles B.

Abstract

Using the farm household as a unit of analysis and farm-level data, this study examines the impact of off-farm income on farmland values. In contrast to previous studies that assume a homogeneous relationship across the entire distribution, in this study quantile regression is used to estimate the empirical model. Results of this study show the effect of land attributes—captured by regional location and farm program payments; off-farm income on value of farmland can be better explained by estimating quantile regression across farmland value categories. Results indicate that a 1percent increase in off-farm income could increase per-acre farmland value between 0.15 and 0.21%.

Suggested Citation

  • Mishra, Ashok K. & Moss, Charles B., 2013. "Modeling the effect of off-farm income on farmland values: A quantile regression approach," Economic Modelling, Elsevier, vol. 32(C), pages 361-368.
    • Handle: RePEc:eee:ecmode:v:32:y:2013:i:c:p:361-368
    DOI: 10.1016/j.econmod.2013.02.022
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    References listed on IDEAS

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    Cited by:

    1. 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, vol. 10(4), pages 1-20, April.
    2. Henning Schaak & Oliver Musshoff, 2022. "The distribution of the rent–price relationship of agricultural land in Germany [An analysis of growth of U.S. farmland prices, 1963–82]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(3), pages 696-718.
    3. Ashok K. Mishra & Kh. A. Mottaleb & Samarendu Mohanty, 2015. "Impact of off-farm income on food expenditures in rural Bangladesh: an unconditional quantile regression approach," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 139-148, March.
    4. Joo, Hyunjeong & Mishra, Ashok, "undated". "Impact of Off-Farm Labor Supply and Government Subsidy on Korean Farmland Value," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235748, Agricultural and Applied Economics Association.
    5. Zhang, Jian & Mishra, Ashok K. & Hirsch, Stefan & Li, Xiaoshun, 2020. "Factors affecting farmland rental in rural China: Evidence of capitalization of grain subsidy payments," Land Use Policy, Elsevier, vol. 90(C).
    6. Ma, Wanglin & Zheng, Hongyun, 2021. "Impacts of Smartphone Use on Agrochemical Use Among Wheat Farmers in China: A Heterogeneous Analysis," 2021 Conference, August 17-31, 2021, Virtual 314991, International Association of Agricultural Economists.
    7. Geremew Worku Kassie, 2017. "The Nexus between livelihood diversification and farmland management strategies in rural Ethiopia," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1275087-127, January.
    8. Schaak, Henning & Mußhoff, Oliver, 2020. "A geoadditive distributional regression analysis of the local relationship of land prices and land rents in Germany," FORLand Working Papers 20 (2020), Humboldt University Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets – Efficiency and Regulation".
    9. Zhang, Jian & Mishra, Ashok K. & Zhu, Peixin & Li, Xiaoshun, 2020. "Land rental market and agricultural labor productivity in rural China: A mediation analysis," World Development, Elsevier, vol. 135(C).
    10. Mela, Giulio & Longhitano, Davide & Povellato, Andrea, 2016. "Agricultural and non-agricultural determinants of Italian farmland values," 2016 Fifth AIEAA Congress, June 16-17, 2016, Bologna, Italy 242327, Italian Association of Agricultural and Applied Economics (AIEAA).

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    More about this item

    Keywords

    Farmland value; Off-farm income; Farm household; Quantile regression; Ordinary least squares; Farm program payments; Gross cash income; Direct payments; Indirect payments;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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