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A comprehensive analysis of farmland value determination: a county-level analysis

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  • Stephen Devadoss
  • Viswanadham Manchu

Abstract

This study develops a comprehensive model of farmland value determination to analyze the effects of various economic variables such as net farm income, government payments, macroeconomic factors, and demographic conditions on farmland values for the counties along the Snake River valley in Idaho. Land values, net farm income, and population show considerable variation among the counties. Therefore, use of county level cross-sectional and time-series data helps to assess the impacts of various factors on land values more accurately. The empirical results show that net farm income, wheat yield, population, and credit availability have positive effects, and property tax rates, interest rates, and debt to asset ratio have negative effects on farmland values.

Suggested Citation

  • Stephen Devadoss & Viswanadham Manchu, 2007. "A comprehensive analysis of farmland value determination: a county-level analysis," Applied Economics, Taylor & Francis Journals, vol. 39(18), pages 2323-2330.
    • Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2323-2330
    DOI: 10.1080/00036840600675687
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    References listed on IDEAS

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    1. Stam, Jerome M., 1995. "Credit as a Factor Influencing Farmland Values," Staff Reports 278779, United States Department of Agriculture, Economic Research Service.
    2. Gardner, Bruce L., 2002. "U.S. Commodity Policies And Land Prices," Working Papers 28560, University of Maryland, Department of Agricultural and Resource Economics.
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