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Additional Evidence on the Homogeneity of the Value of Government Grazing Leases and Changing Attributes for Ranch Values

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Abstract

Using Wyoming ranch sales from 1979-1983 and 1989-1993, this study investigates how ranch value determining attributes may have changed over this period. The 1979-1983 period is one of political stability and rising prices. In constrast, the 1989-1993 period is one of political uncertainty but stable prices. It is found, during 1989-1993, ranch prices were based more on productivity; whereas, during the earlier period, prices were based more on speculative potential. Also, it is found that government grazing leases were valued differently between time periods, ecological regions, and types of leases. This suggests that the current single-price grazing fee commonly used misprices many leases. Because of the heterogeneity in the value of grazing leases, we recommend a variable-fee form of pricing be adopted.

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  • Ronald W. Spahr & Mark A. Sunderman, 1995. "Additional Evidence on the Homogeneity of the Value of Government Grazing Leases and Changing Attributes for Ranch Values," Journal of Real Estate Research, American Real Estate Society, vol. 10(5), pages 601-616.
    • Handle: RePEc:jre:issued:v:10:n:5:1995:p:601-616
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    1. B. Delworth Gardner, 1963. "A Proposal to Reduce Misallocation of Livestock Grazing Permits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 45(1), pages 109-120.
    2. 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.
    3. Torell, L. Allen & Doll, John P., 1991. "Public Land Policy And The Value Of Grazing Permits," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(1), pages 1-11, July.
    4. John R. Winter & James K. Whittaker, 1981. "The Relationship between Private Ranchland Prices and Public-Land Grazing Permits," Land Economics, University of Wisconsin Press, vol. 57(3), pages 414-421.
    5. Bruce A. McCarl & Ray F. Brokken, 1985. "An Economic Analysis of Alternative Grazing Fee Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 769-778.
    6. N. K. Roberts, 1963. "Economic Foundations for Grazing Use Fees on Public Lands," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 45(4), pages 721-731.
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    Cited by:

    1. Ronald W. Spahr & Mark A. Sunderman, 1999. "Valuation of Property Surrounding a Resort Community," Journal of Real Estate Research, American Real Estate Society, vol. 17(2), pages 227-244.
    2. Steven C Bourassa & Martin Hoesli & Jian Sun, 2004. "What's in a View?," Environment and Planning A, , vol. 36(8), pages 1427-1450, August.
    3. McLeod, Donald M. & Bastian, Christopher T. & Germino, Matthew J. & Reiners, William A. & Blasko, Benedict J., 1999. "The Contribution Of Environmental Amenities To Agricultural Land Values: Hedonic Modelling Using Geographic Information Systems Data," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35707, Western Agricultural Economics Association.
    4. Mark A. Sunderman & Ronald W. Spahr & John W. Birch & Russell M. Oster, 2000. "Impact of Ranch and Market Factors on an Index of Agricultural Holding Period Returns," Journal of Real Estate Research, American Real Estate Society, vol. 19(2), pages 209-234.
    5. Ronald W. Spahr & Mark A. Sunderman, 2009. "A Model for Federal Public Land Surface Rights' Management," Journal of Real Estate Research, American Real Estate Society, vol. 31(2), pages 119-146.
    6. McLeod, Donald M. & Bastian, Chris T. & Germino, Matthew J. & Reiners, William A. & Blasko, Benedict J., 2000. "Amenity Impacts on Rural Land Values: Geographic Information Systems Data Incorporated into a Hedonic Property Model," Western Region Archives 321666, Western Region - Western Extension Directors Association (WEDA).
    7. Sengupta, Sanchita & Osgood, Daniel Edward, 2003. "The value of remoteness: a hedonic estimation of ranchette prices," Ecological Economics, Elsevier, vol. 44(1), pages 91-103, February.
    8. 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.
    9. Torell, L. Allen & Rimbey, Neil R. & Ramirez, Octavio A. & McCollum, Daniel W., 2005. "Income Earning Potential versus Consumptive Amenities in Determining Ranchland Values," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(3), pages 1-24, December.
    10. Sengupta, Sanchita & Osgood, Daniel E., 2002. "Valuation Of Ranchette Amenities: A Hedonic Approach," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36547, Western Agricultural Economics Association.

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    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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